Nigeria has surpassed the 70 per cent financial inclusion target under the National Financial Inclusion Strategy, but millions of adults remain financially vulnerable despite increased access to formal financial services.

The 2026 Access to Financial Services in Nigeria (A2F) Survey, conducted by Enhancing Financial Innovation & Access (EFInA) and weighted by the National Bureau of Statistics (NBS), found that formal financial inclusion rose to 73 per cent in 2026.

However, only 30.7 per cent of formally included adults were classified as financially healthy, leaving approximately 60.4 million adults financially vulnerable or merely coping.

Financial Inclusion Rises To 79%

The survey showed that overall financial inclusion, covering both formal and informal access, increased to 79 per cent in 2026, from 74 per cent in 2023 and 68 per cent in 2020.

Formal financial inclusion rose from 64 per cent in 2023 to 73 per cent in 2026, representing approximately 87.2 million adults.

Overall financial inclusion now covers about 94.2 million adults.

Digital financial services recorded significant growth, rising from 45 per cent in 2023 to 64.4 per cent in 2026, equivalent to roughly 77 million adults.

However, the survey identified a substantial gap between access and financial wellbeing.

Only about 25 per cent of Nigerian adults overall were classified as financially healthy, compared with 73 per cent who were formally included.

The report described the resulting 48-percentage-point difference as an “access-health gap.”

Access To Credit Rises As Coping Loans Increase

Formal credit use increased to about 10 per cent of Nigerian adults, equivalent to 11.9 million people, compared with six per cent in 2023.

The figure, however, remains below the 40 per cent NFIS target cited in the survey.

The composition of formal borrowing also changed significantly.

Borrowing for coping and consumption became the largest reported purpose for formal credit, rising from 31.7 per cent in 2023 to 40.8 per cent in 2026.

By comparison, productive enterprise borrowing fell from 40.2 per cent to 34.3 per cent, while household-asset borrowing declined from 25.2 per cent to 23.4 per cent.

The shift represents a reversal from 2023, when productive borrowing exceeded coping and consumption borrowing by 8.5 percentage points.

By 2026, coping and consumption borrowing exceeded productive enterprise borrowing by 6.5 percentage points.

Repayment Stress Remains High

The survey found that 45.8 per cent of formal-credit users reported some or serious repayment stress, while 83.8 per cent experienced ongoing financial stress.

Formal credit use among informally employed Nigerians increased from five per cent to 15 per cent.

Among adults aged 18 to 35, formal credit usage doubled from four per cent to 10 per cent.

The findings indicate that the expansion of access to credit has not necessarily translated into greater financial resilience.

Insurance, Pension Coverage Remain Low

Insurance and pension participation continued to lag behind banking, payments and other formal financial services.

Formal insurance penetration stood at 5.2 per cent, representing approximately 6.2 million adults, while pension participation covered about nine per cent of adults.

The survey found that approximately 93 per cent of formally included adults, or about 81 million people, remained uninsured.

Among insured adults, 59.9 per cent were classified as financially healthy.

Rural Areas Still Lag Behind

The gains in financial inclusion were uneven across regions, gender and location.

The urban-rural gap in formal financial inclusion widened from 24 percentage points to 27 percentage points.

Formal inclusion reached 85 per cent among urban adults, compared with 58 per cent in rural areas.

The South-West recorded formal inclusion of 96.4 per cent, while the figure stood at 61.4 per cent in the North-East and 62.7 per cent in the North-West.

Digital financial services were used by 78 per cent of urban adults compared with 47 per cent of rural adults.

Usage also stood at 70.5 per cent among men and 58 per cent among women.

Trust Remains Key To Financial Service Usage

The survey also identified trust as an important factor influencing continued use of formal financial services.

It found that 96.9 per cent of consumers who trusted their financial service provider had used the provider within the previous 90 days.

This compared with 65.6 per cent among consumers who distrusted their provider.

The report identified fraud control, service reliability, transparent pricing, data protection and effective complaint resolution as important factors in achieving meaningful and sustained financial inclusion.

Challenge Shifts From Access To Financial Resilience

The survey indicates that Nigeria has made greater progress in bringing adults into formal accounts, payments and digital financial services than in providing products that strengthen long-term financial security.

The report therefore points to a growing challenge: translating increased access into financial health, resilience and productive economic participation.

The survey itself does not attribute the increase in coping and consumption borrowing to specific factors such as inflation, food prices, rent, school fees or medical expenses.

Additional market reporting cited in the material points to a difficult consumer-credit environment, including a decline in consumer credit and increased borrowing costs.

The broader implication is that expanding access to financial services alone may not be sufficient if households and businesses continue to face limited financial buffers.

The post Nigeria Surpasses Financial Inclusion Target, But 60.4m Adults Remain Financially Vulnerable appeared first on Housing TV Africa.

Personal loans obtained by Nigerians rose to an estimated N2.06tn in May 2026 as consumer credit continued to expand amid persistent cost pressures and weak consumer spending, according to the latest Economic Report of the Central Bank of Nigeria.

The figure, derived from data contained in the CBN’s May 2026 Economic Report, represents about 64.78 per cent of the N3.18tn total consumer credit outstanding during the month.

The report covers developments across the real, fiscal, financial and external sectors of the Nigerian economy.

According to the apex bank, consumer credit increased by 1.60 per cent from N3.13tn in April to N3.18tn in May, indicating that Nigerians borrowed an additional N50bn within one month.

The CBN attributed the increase to growth in both personal and retail loans, which rose by 1.98 per cent and 0.90 per cent respectively.

The bank said personal loans remained the largest component of consumer credit, accounting for 64.78 per cent, while retail loans represented the remaining 35.22 per cent.

Based on those proportions, personal loans stood at approximately N2.06tn at the end of May, while retail loans amounted to about N1.12tn.

The 1.98 per cent month-on-month increase in personal loans represents an increase of roughly N40bn during the period. Retail loans, which are more directly associated with the purchase of goods and services, recorded a slower 0.90 per cent increase.

The figures indicate that personal borrowing remained the main driver of Nigeria’s consumer-credit market, accounting for nearly two-thirds of outstanding consumer credit.

Economic pressures drive borrowing

The increase in borrowing occurred against a challenging economic backdrop, with the CBN reporting weak economic activity during May.

The bank’s composite Purchasing Managers’ Index stood at 49.60 points in May, slightly higher than the 49.40 points recorded in April but still below the 50-point mark that separates expansion from contraction.

The CBN said the contraction reflected subdued demand, declining new orders and elevated production costs. It also identified weak consumer spending and higher energy-related costs as major pressures on the industry and services sectors.

Inflation also remained elevated during the period. Headline inflation increased to 15.93 per cent in May from 15.69 per cent in April, with the CBN attributing the increase to persistent cost pressures and higher energy prices.

However, month-on-month inflation slowed to 1.75 per cent in May from 2.13 per cent in April.

The combination of rising consumer credit and weak consumer spending indicates that more households were turning to credit at a time when living and operating costs remained under pressure.

More Nigerians borrowing for consumption

The trend is also reflected in findings from the 2026 Access to Financial Services in Nigeria Survey by Enhancing Financial Inclusion & Advancement.

The survey found that 40.8 per cent of Nigerians borrowing from formal financial institutions now use loans mainly for coping and consumption needs, up from 31.7 per cent in 2023.

The increase of 9.1 percentage points made coping and consumption the largest purpose of formal borrowing, overtaking productive enterprise borrowing, which fell from 40.2 per cent in 2023 to 34.3 per cent in 2026.

Borrowing for household assets also declined from 25.2 per cent to 23.4 per cent.

The report warned that the shift towards consumption and coping borrowing raises concerns about whether credit is helping households build productive capacity or simply helping them manage financial pressures.

The survey covered 18,679 adults across Nigeria’s 36 states and the Federal Capital Territory, with data collected between April and June 2026 under the supervision of the National Bureau of Statistics.

Formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, representing about 11.9 million Nigerians borrowing from regulated financial institutions.

When informal sources were included, 36 per cent of adults had access to some form of credit.

Credit use among informally employed Nigerians tripled from five per cent to 15 per cent during the period. Among Nigerians aged between 18 and 35, borrowing increased from four per cent to 10 per cent.

Borrowing among business owners also rose from four per cent to 10 per cent, while farmers recorded an increase from two per cent to six per cent.

Borrowers face repayment pressure

Despite the increase in access to credit, the survey highlighted significant financial stress among borrowers.

About 45.8 per cent of formal-credit users reported experiencing some or serious repayment stress, while 83.8 per cent reported ongoing financial stress.

The findings suggest that the growth in credit access has not necessarily translated into improved financial wellbeing for many Nigerians.

The survey also found that overall financial inclusion had reached 79 per cent, equivalent to about 94.2 million adults, while formal financial inclusion stood at 73 per cent.

However, only about one-quarter of Nigerian adults were considered financially healthy.

EFInA Chief Executive Officer, Foyinsolami Akinjayeju, said the findings showed that Nigeria needed to look beyond simply increasing access to financial services and focus on whether those services were improving people’s financial wellbeing.

EFInA Board Chairman, Dr Agnes Martins, similarly said access to financial services should be viewed as the beginning rather than the ultimate objective of financial inclusion.

The latest CBN figures therefore show a continued expansion in consumer credit, while the financial inclusion survey highlights a shift in the reasons Nigerians are borrowing, with a growing share turning to loans to cope with household pressures and consumption needs.

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The Nigerian Consumer Credit Corporation (CREDICORP) has launched a landmark pension-backed loan program, giving retirees access to affordable credit for the first time.

Unveiled in Abuja under the theme “Empowering Retirement with Consumer Credit”, the initiative is in partnership with Leadway Trustees and Optimus Bank. It allows retirees to take low-interest loans using their pension income as collateral.

CREDICORP MD/CEO Engr, Uzoma Nwagba in his remarks stated that: “This first-of-its-kind product ensures that Nigeria’s seniors can access credit with dignity, without the burden of exorbitant rates or complex processes”

“Annuitants are the backbone of Nigeria’s progress, yet they have been sidelined in the credit ecosystem. This program changes that narrative. By partnering with Leadway Trustees’ expertise in pension management we are delivering a credit solution that is safe, affordable, and transparent.”

Nwagba praised President Bola Tinubu for “driving financial inclusion through the Renewed Hope Agenda,” saying the scheme would help retirees meet needs such as healthcare, home improvements, and small businesses.

The program covers federal and state pensioners and is expected to significantly ease post-retirement financial burdens nationwide.

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