Consumer credit in Nigeria fell sharply by 17 percent month-on-month (MoM) to ₦3.54 trillion in July 2025, from ₦4.27 trillion in June 2025, following weak retail demand and rising interest rates, according to the Central Bank of Nigeria’s (CBN) July 2025 Economic Report.

The report showed that the total consumer credit comprised ₦950 billion in retail loans and ₦2.59 trillion in personal loans.

Retail loans recorded a 51.5 percent decline, dropping from ₦1.96 trillion in June to ₦950 billion in July, as higher borrowing costs discouraged consumer lending.

The CBN attributed the slump to rising interest rates, citing findings from its July 2025 Consumer Expectations Survey, which revealed that 40.6 percent of respondents observed an increase in loan rates over the past three months. Only 34.4 percent expect rates to rise further in the next quarter.

In contrast, personal loans grew 12.1 percent MoM, from ₦2.31 trillion in June to ₦2.59 trillion in July, reflecting households’ continued demand for liquidity.

The apex bank noted:

“Consumer credit outstanding fell by 17.10 percent to ₦3.54 trillion at end-July 2025 from ₦4.27 trillion in the preceding month. The decrease was driven by the 51.53 percent decline in retail loans, which offset the 12.21 percent increase in personal loans.”

The report also showed that personal loans accounted for 73.2 percent of total consumer credit, while retail loans made up the remaining 26.8 percent.

CBN analysts added that the continued dominance of personal loans highlights households’ sustained need for cash flow support, despite tightening monetary conditions.