Nigeria consumer and private sector credit expands amid recapitalisation

Consumer credit in Nigeria saw significant growth in mid-2026. According to the Central Bank of Nigeria, total consumer credit rose to N3.18 trillion in May, an increase of N50 billion from the previous month. Personal loans were the primary driver, accounting for approximately 64.78 per cent of the total, or N2.06 trillion, while retail loans made up the remaining 35.22 per cent.

Simultaneously, bank credit to the private sector expanded by N3.96 trillion between April and August 2026, reaching N84.55 trillion. This growth follows bank recapitalisation efforts that increased liquidity within the banking system. While year-on-year credit growth accelerated to 11.43 per cent by August, experts noted that high interest rates continue to dampen borrowing demand, particularly among smaller corporations.

Economic indicators remain mixed. While credit expansion suggests improving business confidence and a need for inventory financing, the Purchasing Managers’ Index remained below the 50-point expansion threshold in May, reflecting subdued demand and elevated production costs. Headline inflation also saw a slight increase to 15.93 per cent in May.