Personal loans hit new high N1.99tn
Nigerians’ outstanding personal loans increased by an estimated N58.5bn in the second quarter of 2026, reaching N1.99tn at the end of June, as households faced persistent inflationary pressures and high borrowing costs. An analysis by The PUNCH of the Central Bank of Nigeria’s Second Quarter 2026 Economic Report showed that personal loans rose by 3.03 Read More:…
As of June 2026, Nigerian households have accumulated personal loans amounting to N1.99tn, marking a significant increase of N58.5bn from the previous quarter. This surge is attributed to persistent inflationary pressures and high borrowing costs impacting consumers' purchasing power. Personal loans, which constituted 62.87 per cent of total consumer credit, have recorded a 3.03 per cent rise, bringing the total to N1.99tn.
Retail loans, accounting for the remaining 37.13 per cent, grew by 4.10 per cent to N1.18tn. Despite a marginal decline in the average prime lending rate to 19.01 per cent, the cost of borrowing remained high, with the maximum lending rate at 34.37 per cent. The increase in personal borrowing occurred as household incomes failed to match rising prices, primarily driven by energy and commodity price hikes due to geopolitical tensions.
Formal credit usage surged from six per cent in 2023 to 10 per cent in 2026, with 11.9 million Nigerians accessing regulated credit sources. The rising reliance on credit for coping and consumption needs was highlighted, with coping/consumption purposes rising from 31.7 per cent to 40.8 per cent, overtaking productive enterprise borrowing.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
