By Damilare Adeleye
Nigeria’s banking sector recorded a significant increase in personal lending at the start of 2026, with outstanding personal loans climbing to N1.96 trillion in January and accounting for more than half of all consumer credit in the country.
Data contained in the latest Economic Report released by the Central Bank of Nigeria (CBN) showed that total consumer credit rose marginally by 0.79 percent to N3.81 trillion in January, compared with the N3.78 trillion recorded in December 2025. This growth was largely driven by an expansion in personal loans.
According to the apex bank, personal lending increased by 5.95 percent from N1.85 trillion in December to N1.96 trillion in January, representing 51.44 percent of total consumer credit.
In contrast, retail loans declined by 4.15 percent to N1.85 trillion from N1.93 trillion in the previous month, accounting for the remaining 48.56 percent.
The report also highlighted a modest rise in overall credit to the economy. Total lending increased by 0.17 percent to N57.41 trillion in January from N57.32 trillion in December, supported mainly by stronger credit flows to the services and agricultural sectors.
CBN data indicated that lending to agriculture expanded by 2.77 percent, while credit to the services sector rose by 0.12 percent. However, loans to the industrial sector fell by 0.24 percent during the period.
A sectoral breakdown showed that the services sector remained the largest beneficiary of bank credit, attracting 56.98 percent of total loans. Industry accounted for 36.55 percent, while agriculture received 6.47 percent.
Credit to agriculture increased to N3.81 trillion from N3.71 trillion in December, while lending to the services sector rose to N32.86 trillion from N32.71 trillion. Industrial credit stood at N21.21 trillion.
Within the services segment, finance, insurance, and capital market activities received N9.16 trillion in loans, while trade and commerce attracted N5.54 trillion. In the industrial sector, manufacturing remained the biggest recipient with N6.37 trillion, followed by construction with N2.44 trillion, and power and energy projects with N1.59 trillion.
The report further revealed that the broad money supply contracted by 1.5 percent in January, reflecting tighter liquidity conditions and a decline in net foreign assets. Despite this, the banking system remained stable, with prudential indicators staying within regulatory limits.
Speaking after the 305th meeting of the Monetary Policy Committee (MPC), CBN Governor Olayemi Cardoso noted that lending to small and medium-scale enterprises had shown signs of improvement.
He disclosed that fresh credit to SMEs rose to about N199 billion in April 2026 from N153 billion in March, with most of the facilities concentrated in the general business category.
Cardoso stressed that expanding access to finance for SMEs required collaboration among several institutions, including the Ministry of Industry, Trade and Investment, the Bank of Industry, and fiscal authorities.
He said the CBN’s role would focus on creating a more supportive lending environment.
This came as the MPC opted to maintain the benchmark interest rate at 26.5 percent, citing concerns over inflationary pressures, external economic risks, and the need to preserve exchange rate stability.