Nigeria credit expansion and financial inclusion trends

In mid-2026, Nigeria experienced growth in consumer and private sector credit. Central Bank of Nigeria data indicated that total consumer credit reached N3.18 trillion in May, driven largely by personal loans which accounted for approximately 64.78 per cent of the total. Bank credit to the private sector also expanded significantly, reaching N84.55 trillion by August following bank recapitalisation efforts.

Despite this expansion, economic indicators remained mixed due to high interest rates and elevated production costs. A 2026 survey by EFInA and the National Bureau of Statistics reported that formal credit use among Nigerian adults rose to 10 per cent, up from six per cent in 2023. However, the data showed that formal borrowing for consumption and coping purposes (40.8 per cent) had surpassed borrowing for productive enterprise (34.3 per cent), and nearly 45.8 per cent of formal credit users reported repayment stress.

In response to these trends, industry leaders have advocated for cash flow-based lending to support businesses that lack traditional collateral but maintain reliable income streams.