Retail lending saw a decline in January 2026, even as consumer and personal loans continued to grow, reaching N3.81 trillion. This trend reflects tighter banking system liquidity and a more cautious approach to credit expansion by deposit money banks.
Data from the Central Bank of Nigeria's January 2026 Economic Report indicates that retail loans moderated during the period. The overall increase in consumer credit outstanding was primarily driven by a rise in personal loans.
This development occurs against a backdrop of elevated interest rates and the apex bank's ongoing tight monetary policy, which aims to curb inflation and stabilize the foreign exchange market.
Despite the slowdown in retail lending, personal loans remained a significant component of household borrowing. This was supported by rising demand for salary-backed facilities, digital credit, and short-term consumer financing.
The sustained increase in consumer credit balances suggests that many Nigerians relied more heavily on borrowing to manage rising living costs and a weakening purchasing power.
Consumer credit outstanding climbed to N3.81 trillion in January 2026, demonstrating a persistent demand for household financing despite tighter lending conditions across the banking sector.
The CBN report detailed that consumer credit outstanding increased by 0.79% from N3.78 trillion in the preceding month. The growth in consumer credit was solely attributed to the rise in personal loans, which increased by 5.95% to N1.96 trillion from N1.85 trillion. These personal loans constituted 51.44% of the total consumer credit.
Conversely, retail loans fell by 4.15% to N1.85 trillion from N1.93 trillion, representing 48.56% of the total consumer credit. This indicates a shift in borrowing patterns within the consumer credit space.
The trend also underscores the growing importance of retail banking products in Nigeria’s credit market. Banks are increasingly utilizing digital channels and payroll lending products to expand their retail portfolios.
The CBN report further showed that monetary conditions tightened further during January 2026, contributing to slower lending growth across various segments of the economy.
