Personal loans granted by Nigerian banks rose to N1.96 trillion in January 2026, accounting for more than half of total consumer credit, amid a marginal expansion in overall lending to the economy, data from the Central Bank of Nigeria (CBN) has shown.
The latest Economic Report of the apex bank indicated that total consumer credit increased by 0.79 per cent to N3.81 trillion in January from N3.78tn in December 2025, driven entirely by growth in personal lending.
According to the report, personal loans rose by 5.95 per cent month-on-month to N1.96 trillion from N1.85 trillion, representing 51.44 per cent of total consumer credit during the period.
The CBN said: “Consumer credit outstanding increased by 0.79 per cent to N3.81tn, from N3.78tn in the preceding month. The increase in consumer credit was due solely to the rise in personal loans by 5.95 per cent to N1.96tn from N1.85tn, which constituted 51.44 per cent of total consumer credit.”
In contrast, retail loans declined by 4.15 per cent to N1.85tn from N1.93tn, accounting for 48.56 per cent of total consumer credit.
Despite the expansion in consumer lending, total credit to the economy recorded only marginal growth, rising by 0.17 per cent to N57.41 trillion in January from N57.32 trillion in December 2025.
The apex bank attributed the increase largely to higher lending to the services and agriculture sectors, even as industrial credit weakened slightly.
It stated: “The growth was driven primarily by the 0.12 and 2.77 per cent increase in credit to the services and agriculture sectors, respectively. Credit to the industry sector, however, declined by 0.24 per cent.”
Sectoral breakdown showed that services remained the dominant recipient of bank credit, accounting for 56.98 per cent of total lending, followed by industry at 36.55 per cent and agriculture at 6.47 per cent.
Credit to agriculture rose to N3.81 trillion from N3.71tn, while services sector lending increased to N32.86 trillion from N32.71 trillion. Industrial credit stood at N21.21 trillion, compared with N20.99 trillion in the preceding month.
Within services, finance, insurance and capital market activities received N9.16tn, while trade and general commerce attracted N5.54 trillion. In the industrial segment, manufacturing accounted for N6.37 trillion, power and energy N1.59 trillion, and construction N2.44 trillion.
The report also showed a contraction in broad money supply during the period, reflecting tighter liquidity conditions in the banking system.
According to the CBN, broad money supply declined by 1.50 per cent in January, largely driven by a fall in net foreign assets, although the banking sector was described as stable and resilient with prudential indicators within regulatory thresholds.
At the 305th meeting of the Monetary Policy Committee (MPC), CBN Governor Olayemi Cardoso said credit to small and medium enterprises (SMEs) had begun to improve, rising to about N199 billion in April 2026 from N153 billion in March.
He noted that SME lending remained concentrated in general categories, which accounted for 94.73 per cent of new credit facilities, while general commerce represented 2.46 per cent.
Cardoso also stressed that SME financing was not solely the responsibility of the central bank, pointing to the role of the Ministry of Industry, Trade and Investment, the Bank of Industry, and fiscal authorities in expanding access to credit.
