Nigerians Are Borrowing More To Cover Everyday Expenses As Repayment Stress Rises, A2F 2026 Survey Shows

• 40.8% of formal borrowers used loans for consumption and coping in 2026, up from 31.7% in 2023.

• The share borrowing for productive enterprises fell from 40.2% to 34.3%.

• 45.8% of formal borrowers reported difficulties repaying their loans.

• Formal credit reached 10% of Nigerian adults, up from 6% in 2023.

September 25, () – More Nigerians are getting access to formal credit, but a growing share of those loans are being used to manage everyday financial pressure rather than to expand businesses or acquire productive assets.

The Access to Financial Services in Nigeria (A2F) Survey by Enhancing Financial Innovation and Access (EFInA) found that formal borrowers used loans for consumption and coping needs, compared with earlier trends. Borrowing for productive enterprises fell over the same period.

The survey covered adults across Nigeria’s thirty-six states and the Federal Capital Territory, with oversight from the National Bureau of Statistics.

Formal credit use itself increased, with millions more adults using formal credit. The numbers show a financial system reaching more people while also revealing what some borrowers are using that access for.

More Loans Are Going Towards Immediate Needs

A loan used to buy stock for a shop can potentially generate additional income to repay the debt.

A loan used to cover food, rent, school expenses, medical bills, or other household costs does something different: it helps close an immediate gap without necessarily creating another source of income.

The EFInA figures show that the second use has become more common. The share of formal borrowers using loans for household assets also declined.

That does not mean every consumption loan reflects financial distress. People borrow for many reasons, including planned household spending and temporary cash-flow gaps.

But the repayment figures provide another indication of the pressure facing borrowers. A significant share of formal borrowers reported difficulties repaying their loans, while the vast majority said they remained under financial strain.

For a household whose income is already being absorbed by food, transport, housing, and other regular expenses, a new loan repayment becomes another fixed obligation.

If the borrowing is repeated, the household may end up using one source of credit to manage a gap created by another. Traders managing daily expenses and household cash flow.

Access to Credit Is Growing, But Financial Health Is Not Keeping Pace

The expansion of formal credit is part of a broader improvement in financial inclusion. EFInA’s survey found that overall financial inclusion and formal financial inclusion reached record numbers of adults.

Credit access has also expanded among groups that traditionally had less access to formal lenders, including informally employed Nigerians, young adults, and farmers.

Yet only a small fraction of Nigerian adults were classified as financially healthy in the survey. That puts the credit figures in context. More people can access formal financial services, but access alone does not show whether households are becoming more financially secure.

For lenders, the shift in borrowing purposes and the level of repayment difficulty are relevant to credit risk. For households, the more immediate issue is what happens after the money arrives.

If the loan finances an income-generating activity, repayment may come from the additional income. If it pays for expenses that return every month, the repayment still has to come from income that may not have increased.

Nigeria’s credit market is reaching more households. The EFInA data suggests the next question is whether that credit is helping them move forward or simply giving them more room to cope.