Outstanding consumer credit in Nigeria fell by N780bn in one month to N3.03tn in February 2026, as high borrowing costs continued to weigh on household demand for loans despite improving macroeconomic conditions.
The decline was contained in the Central Bank of Nigeria’s February 2026 Economic Report, obtained from the apex bank’s website on Friday, which showed that consumer credit dropped from N3.81tn in January to N3.03tn in February, driven by reductions in both personal and retail loans.
The report, however, indicated that credit to the broader economy continued to expand during the review period. According to the CBN, “Total credit to the economy increased by 0.82 per cent to N57.88tn at end-February 2026, from N57.41tn in the preceding month, mirroring the gradual improvement in monetary conditions.”
The apex bank noted that lending growth was largely driven by productive sectors of the economy. It stated, “The growth was broad-based, as indicated by increases in credit to the agriculture (2.70 per cent), industry (1.05 per cent), and services (0.46 per cent) sectors. The services sector maintained dominance, accounting for 56.78 per cent of total credit, followed by industry (36.64 per cent) and agriculture (6.58 per cent) sectors.”
The contraction in consumer credit came even as monetary conditions showed signs of easing. The report said, “Monetary conditions eased in February, following the relaxation of the policy rate amid cooling inflation, with money supply (M3) declining for the second consecutive month.”
Despite the moderation in monetary conditions, lending rates remained relatively high, limiting the appetite for household borrowing. The CBN also reported stronger liquidity across the banking system during the month.
It stated, “The average liquidity in the banking system stood at N3.08tn, a 23.69 per cent increase from N2.49tn in January, driven largely by fiscal injections and maturing Nigerian Treasury Bills and Federal Government of Nigeria Bonds.”
The report showed that the domestic economy continued to strengthen in February, supported by improved business activity and rising confidence. Business activity, measured by the composite Purchasing Managers’ Index, rose to 56.40 in February from 55.70 in January, signalling a faster pace of expansion across the industry, services and agriculture sectors.
According to the report, “The expansion was driven by sustained activity in industry, services, and agriculture, underscoring stronger business sentiment and rising consumer confidence.”
The CBN also said inflationary pressures continued to ease during the month. It stated, “The disinflationary trend in the economy was sustained in February, driven by prevailing monetary policy stance and stability in the foreign exchange market.”
