Nigerians Pay Back ₦1.33tn Loans in One Year – CBN
Nigerians significantly reduced their personal debt obligations over the past year, repaying an estimated ₦1.33 trillion in personal loans, according to the latest data released by the Central Bank of Nigeria (CBN).
The figures, contained in the apex bank’s Economic Report for November 2025, reveal a notable contraction in outstanding personal loans across the country. The report shows that personal loan balances declined from ₦3.32 trillion in November 2024 to about ₦1.99 trillion by November 2025, suggesting that many borrowers either cleared existing debts or became more cautious about taking new loans.
The decline in personal lending also contributed to a broader slowdown in consumer credit within Nigeria’s banking system. Overall consumer credit dropped from ₦4.42 trillion in November 2024 to roughly ₦3.19 trillion in November 2025, reflecting reduced borrowing activity among households.
Economic experts attribute the shift largely to tighter monetary conditions and the rising cost of borrowing. Throughout 2025, the Central Bank of Nigeria maintained an aggressive monetary policy stance to curb inflation, pushing interest rates higher and making loans more expensive for individuals and businesses.
Despite the sharp drop, personal loans remained the dominant segment of consumer credit, accounting for about 62.38 percent of total consumer lending, valued at approximately ₦1.99 trillion. Retail loans, which include financing for household goods and other consumer purchases, made up the remaining 37.62 percent, totaling about ₦1.20 trillion.
Interestingly, while personal loans declined significantly, retail lending recorded a modest increase during the period. Retail credit rose from ₦1.11 trillion in November 2024 to around ₦1.20 trillion in November 2025, representing a year-on-year growth of roughly ₦90 billion.
Financial analysts say the trend reflects changing financial behaviour among Nigerian households, many of whom are becoming more cautious about borrowing as the cost of living rises. With inflation remaining high and lending rates elevated, consumers are increasingly prioritizing debt repayment and limiting new credit commitments.
The development also underscores the impact of the CBN’s tight monetary policy, which kept the Monetary Policy Rate (MPR) above 27 percent for much of 2025 in an effort to control inflation and stabilize the economy.
Experts note that while consumer borrowing had expanded in recent years as many Nigerians relied on loans to cope with economic pressures, the latest data suggests a gradual shift toward financial caution, with households focusing more on managing debt and reducing their exposure to high-interest loans.
