Nigerians repaid about ₦1.33 trillion in personal loans within one year, according to new data released by the Central Bank of Nigeria (CBN).
Figures from the apex bank’s November 2025 Economic Report showed that outstanding personal loan balances dropped from ₦3.32 trillion in November 2024 to ₦1.99 trillion in November 2025, reflecting a sharp decline in household borrowing during the period.
The development contributed to a broader contraction in consumer credit across Nigeria’s banking system, with total consumer credit falling from ₦4.42 trillion to ₦3.19 trillion within the same period.
According to the CBN, the decline was largely driven by reduced personal and retail lending, as high interest rates and tight monetary policy discouraged borrowing.
Despite the drop, personal loans remained the largest component of consumer credit, accounting for about 62.38 per cent of total consumer credit at ₦1.99 trillion, while retail loans made up ₦1.20 trillion or 37.62 per cent.
The CBN noted that the slowdown in borrowing reflects changing credit conditions and adjustments by households, many of whom are reducing reliance on unsecured loans amid rising borrowing costs.
The trend also coincides with the bank’s tight monetary policy stance, with the Monetary Policy Rate remaining elevated for much of 2025 as authorities sought to curb inflation and stabilise the economy.
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