ABUJA, Nigeria (VOICE OF NAIJA)- Personal loans granted by Nigerian banks rose to N1.96tn in January 2026, accounting for more than half of total consumer credit in the country, according to the latest Economic Report of the Central Bank of Nigeria.
The report, obtained from the CBN website, showed that total consumer credit increased slightly by 0.79 per cent to N3.81tn in January from N3.78tn in December 2025, with personal lending driving the entire growth.
The apex bank stated, “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.”
Retail loans, however, declined by 4.15 per cent to N1.85tn from N1.93tn in the preceding month, representing 48.56 per cent of total consumer credit.
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The growth in personal lending came as overall credit to the economy recorded a marginal increase during the review period.
Total credit to the economy rose by 0.17 per cent to N57.41tn in January from N57.32tn in December 2025.
The CBN attributed this increase largely to higher lending to the services and agriculture sectors.
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 distribution showed that the services sector remained the largest 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.
Agricultural credit rose to N3.81tn in January from N3.71tn in December, while services sector lending increased to N32.86tn from N32.71tn. Industrial credit stood at N21.21tn, up from N20.99tn in the previous month.
Within the services sector, finance, insurance, and capital market activities received N9.16tn, while trade and general commerce attracted N5.54tn.
In the industrial sector, manufacturing remained the largest sub-component with N6.37tn, while power and energy received N1.59tn and construction N2.44tn.
The report also showed that broad money supply contracted during the month due to tighter liquidity conditions in the banking system.
According to the CBN, broad money supply fell by 1.50 per cent in January, driven mainly by a decline in net foreign assets, while the banking sector remained stable and resilient with key prudential indicators within regulatory limits.
At the end of the 305th Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso said credit to SMEs had begun to improve, rising to about N199bn in April 2026 from N153bn in March.
He noted that the general category accounted for 94.73 per cent of new credit facilities, while general commerce made up 2.46 per cent.
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He added that SME financing was not solely the responsibility of the CBN, stressing the roles of the Ministry of Industry, Trade and Investment, the Bank of Industry, and fiscal authorities, with the apex bank acting mainly as a catalyst to improve the lending environment.
This came as the Monetary Policy Committee retained the benchmark interest rate at 26.5 per cent, citing rising external risks, renewed inflationary pressures, and the need to maintain exchange rate stability.
The decision followed a rise in headline inflation to 15.69 per cent in April 2026 from 15.38 per cent in March, according to the National Bureau of Statistics.
Food inflation also increased to 16.06 per cent from 14.31 per cent, driven by higher transport and logistics costs and seasonal pressures, while core inflation eased to 15.86 per cent from 16.21 per cent.
However, President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, criticised the MPC decision, calling for a reduction in interest rates to improve access to funding for SMEs.
“Many of us were very hopeful that the interest rate would come down. We believe that lowering the interest rate will go a long way to support more access to funding for SMEs and will also make it more affordable,” Egbesola said.
He added that maintaining the rate would worsen the financial strain on businesses and households already grappling with inflation and rising energy costs.