Nigerians repaid approximately N1.33 trillion in personal loans over the course of a year, reflecting a sharp decline in consumer borrowing as reported by the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) has released an Economic Report detailing a significant repayment of personal loans by Nigerians, amounting to about N1.33 trillion within a year. This repayment is part of a broader trend where outstanding household borrowing decreased sharply from N3.32 trillion in November 2024 to N1.99 trillion in November 2025. The report suggests a notable contraction in consumer credit during this period, indicative of reduced borrowing behavior among households.
The decline in personal lending has had further implications on the overall consumer credit landscape in the Nigerian banking system. Total consumer credit outstanding saw a reduction from N4.42 trillion in November 2024 to N3.19 trillion in November 2025, showcasing a 13.32 percent decline. This trend underlines the weakening of household borrowing conditions, as economic pressures may have forced individuals to focus on debt repayment rather than accumulating new debt.
This decrease in borrowing activity has been attributed by the CBN to lower consumer lending volume in both personal and retail sectors. As the economic landscape shifts, with households prioritizing debt repayment over new loans, understanding the factors driving this change will be essential for policymakers and financial institutions aiming to navigate and support recovery in consumer confidence and credit demand.
