Nigeria’s consumer credit declined for the first time in six years, falling by 19.89 per cent to N3.78tn in 2025 from N4.72tn a year earlier, as elevated interest rates dampened household borrowing, according to the Central Bank of Nigeria.
The decline, disclosed in the CBN’s 2025 Annual Report and Statement of Accounts, ended a growth streak that had persisted since December 2019. The apex bank linked the contraction to the prevailing interest rate environment, which reshaped borrowing patterns across the banking industry.
A breakdown of the figures showed that the overall decline was largely driven by a reduction in personal loans, despite a strong expansion in retail lending during the year. The shift also changed the structure of consumer lending, with retail credit overtaking personal loans to account for the largest share of outstanding consumer credit.
The report stated that retail loans climbed 63.77 per cent to N1.94tn in 2025, representing 51.16 per cent of total consumer credit. Personal loans, on the other hand, fell to N1.85tn, accounting for the remaining 48.84 per cent of the portfolio.
According to the CBN, consumer lending also represented a smaller portion of banks’ overall credit exposure to the private sector. Consumer credit accounted for 6.60 per cent of total private sector credit extended by other depository corporations in 2025, down from 7.98 per cent in the previous year.
