Outstanding personal loans in Nigeria rose by N58.5 billion in the second quarter of 2026, reaching N1.99 trillion at the end of June, amid persistent inflationary pressures and high borrowing costs.

The Central Bank of Nigeria (CBN), in its Second Quarter 2026 Economic Report, said personal loans increased by 3.03 per cent from approximately N1.93 trillion recorded at the end of March.

The report also showed that total consumer credit rose by 3.26 per cent to N3.17 trillion from N3.07 trillion in the preceding quarter, representing an increase of about N100 billion within three months.

According to the CBN, the growth reflected increases in both retail and personal loans, which rose by 4.10 per cent and 3.03 per cent respectively.

Personal loans accounted for 62.87 per cent of total consumer credit, while retail loans represented the remaining 37.13 per cent.

This indicates that nearly 63 per cent of consumer borrowing from financial institutions was in the form of personal loans, underscoring their dominance in the country’s consumer credit market.

Retail loans also recorded an increase of approximately N46.5 billion, rising from an estimated N1.13 trillion in March to N1.18 trillion at the end of June.

Although retail loans recorded a higher percentage growth, personal loans remained the larger component of outstanding consumer credit.

The rise in household borrowing coincided with renewed inflationary pressures, which continued to weaken consumers’ purchasing power.

The CBN report showed that headline inflation increased to 15.91 per cent in June from 15.38 per cent in March, reflecting rising prices of essential goods and services.

It attributed the development largely to higher energy and commodity prices linked to geopolitical tensions in the Middle East, which pushed up production and transportation costs.

The resulting pressures further strained household budgets, particularly among income earners whose earnings have not kept pace with rising living costs.

However, the report did not establish whether the increase in personal loans was primarily driven by financial difficulties, consumption needs or improved access to credit.

The expansion in consumer borrowing also came against the backdrop of elevated lending rates in the banking sector.