LAGOS – Consumer credit outstanding in Nigeria fell 19.89% to N3.78 trillion in 2025 from N4.72 trillion in 2024. The N939.53 billion contraction marks the first annual decline since December 2019.
According to the Central Bank of Nigeria (CBN) 2025 Annual Report, consumer credit’s share of total private sector loans dropped to 6.60% from 7.98% recorded in the preceding year.
A sharp plunge in personal loans to N1.85 trillion drove the contraction. Conversely, retail loans jumped 63.77% to N1.94 trillion, making up 51.16% of total consumer borrowing.
Short-term debt dominated bank portfolios at 51.60%, down 7.71 percentage points. Meanwhile, long-term credit rose 7.82 percentage points to 34.94% as lenders restructured facility maturities.
Persistent interest rate hikes pushed benchmark borrowing costs above 26%, severely dampening retail demand. Concurrently, commercial lenders shifted liquidity into high-yielding public securities, further tightening private sector lending access.
