Nigeria's Consumer Credit Drops 19.89% to N3.78 Trillion

In 2025, Nigeria's consumer credit experienced a significant decline of 19.89%, dropping to N3.78 trillion from N4.72 trillion the previous year, as reported by the Central Bank of Nigeria (CBN). This marked the first decrease in consumer credit since December 2019, primarily due to elevated interest rates that affected household borrowing patterns.

The CBN's 2025 Annual Report indicated that personal loans fell to N1.85 trillion, while retail loans surged by 63.77% to N1.94 trillion, making up 51.16% of total consumer credit. Consequently, consumer lending represented a smaller portion of banks' overall credit exposure, accounting for 6.60% of total private sector credit, down from 7.98% in 2024.

The report also noted shifts in the maturity profile of banks' loan books, with short-term credit remaining dominant at 51.60%, although its share declined. Long-term credit increased significantly, reflecting a gradual adjustment in banks' lending profiles.