Nigeria's Consumer Credit Drops N780bn Amid High Rates

In February 2026, consumer credit in Nigeria fell by N780 billion, dropping from N3.81 trillion in January to N3.03 trillion. This decline is attributed to high borrowing costs that continue to weigh on household demand for loans, despite improvements in macroeconomic conditions.

The Central Bank of Nigeria (CBN) reported this in its February 2026 economic report. Overall, total credit to the economy increased by 0.82 percent, reaching N57.88 trillion at the end of February, up from N57.41 trillion the previous month.

The report indicates that credit growth was largely driven by the agricultural sector, which saw a 2.70 percent increase, followed by the industrial sector at 1.05 percent and the services sector at 0.46 percent. The services sector accounted for 56.78 percent of total credit.

The CBN also noted that lending rates remain relatively high, limiting household borrowing appetite, despite stronger liquidity in the banking system.