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Nigeria's outstanding consumer credit dropped sharply to N3.03 trillion in February 2026, reflecting weaker household borrowing as high lending rates and tighter credit conditions continued to dampen demand for loans.
According to the Central Bank of Nigeria (CBN) February 2026 Economic Report, consumer credit declined by N780 billion, or 20.48 per cent, from N3.81 trillion recorded in January.
The apex bank attributed the decline to contractions in both personal and retail loans, with retail lending recording the steepest fall of 41.85 per cent, while personal loans declined marginally by 0.40 per cent.
The report noted that personal loans remained the largest component of household credit, accounting for 64.58 per cent of the total portfolio, valued at about N1.96 trillion, while retail loans made up the remaining 35.42 per cent, equivalent to approximately N1.07 trillion.
According to the CBN, the sharp decline suggests that loan repayments outpaced fresh credit disbursements during the month.
Despite the slowdown in consumer lending, total credit to the economy continued to expand. Aggregate credit rose by 0.82 per cent to N57.88 trillion in February from N57.41 trillion in January, driven by increased lending to the agriculture, industrial and services sectors.
The report indicates that banks continued to prioritise financing productive sectors even as household borrowing weakened.
Borrowing costs, however, remained elevated despite the CBN's gradual shift towards a more accommodative monetary policy. The average maximum lending rate increased to 35.17 per cent in February from 32.68 per cent in January, while the average prime lending rate eased slightly to 19.29 per cent from 19.54 per cent.
On the savings side, the weighted average savings and term deposit rate declined to 8.12 per cent from 8.52 per cent, further widening the gap between deposit and lending rates.
The report also showed improved liquidity across the banking sector, with average system liquidity rising by 23.69 per cent to N3.08 trillion, supported by fiscal injections and inflows from maturing Treasury bills and Federal Government bonds. The improved liquidity contributed to lower interbank lending rates during the period.
Meanwhile, the Centre for the Promotion of Private Enterprise has expressed concern over persistent structural weaknesses in Nigeria's credit market, arguing that stronger bank balance sheets following recapitalisation should translate into greater financing for productive businesses.
Similarly, Tony Elumelu, Chairman of United Bank for Africa Group, recently called for improved access to credit, saying entrepreneurs and small businesses continue to face stringent lending conditions due to tighter regulatory requirements and banks' limited appetite for risk.
