Consumer Credit Falls ₦780bn in One Month — CBN
Outstanding consumer credit in Nigeria fell sharply by ₦780bn in February 2026, dropping to ₦3.03tn from ₦3.81tn in January, according to the Central Bank of Nigeria’s (CBN) Economic Report.
The decline was driven by reductions in both personal and retail loans, as high borrowing costs continued to weigh on household demand despite signs of improving macroeconomic conditions.
In contrast, total credit to the economy expanded by 0.82% to ₦57.88tn, reflecting stronger lending to productive sectors.
The CBN noted increases in credit to agriculture (2.7%), industry (1.05%), and services (0.46%), with services accounting for 56.8% of total credit.
The report said monetary conditions eased in February following a relaxation of policy rates amid cooling inflation, but lending rates remained relatively high, limiting household borrowing appetite.
Liquidity in the banking system rose to ₦3.08tn, up 23.7% from January, driven by fiscal injections and maturing government securities.
Business activity also strengthened, with the Purchasing Managers’ Index rising to 56.4, signalling faster expansion across industry, services, and agriculture.
Headline inflation slowed marginally to 15.06% in February, down from 15.10% in January, though month-on-month inflation rose to 2.01% due to higher energy costs and Ramadan-related food demand.
CBN Governor Olayemi Cardoso said credit to SMEs had begun to improve, rising to ₦199bn in April from ₦153bn in March, particularly at the retail end.
He stressed that SME financing also requires support from the Ministry of Industry, Trade and Investment, the Bank of Industry, and fiscal authorities.
However, the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.5%, citing external risks and the need to sustain exchange rate stability.
SME leaders criticised the decision, warning that high rates would worsen challenges for businesses and households already struggling with energy costs and inflation.