Debt Burden Can Trigger Anxiety, Depression, Nigerian Psychiatrists Warn

Nigerian psychiatrists have warned that mounting debt, inability to meet loan repayment obligations and persistent pressure from creditors can expose borrowers to psychological distress, including anxiety, sleep difficulties and depression.

The specialists advised Nigerians to assess their ability to repay loans before borrowing and to seek professional assistance when financial difficulties begin to affect their mental well-being.

A Professor of Psychiatry at the University of Jos, Plateau State, Taiwo Obindo, said the inability to find a way out of debt could turn financial pressure into a prolonged source of stress, potentially affecting sleep, appetite and mood.

Obindo, a former president of the Association of Psychiatrists in Nigeria, made the observations in an interview with PUNCH Healthwise published on Sunday.

He explained that people experiencing debt-related distress might initially show symptoms such as poor sleep, loss of appetite and persistent unhappiness without necessarily meeting the clinical criteria for a mental health disorder.

However, he warned that symptoms that persist or become more severe could develop into a diagnosable mental health condition.

The psychiatrist also cautioned against using alcohol, illicit drugs or sleeping medication without appropriate medical advice to cope with financial worries.

He urged people experiencing persistent symptoms to consult qualified mental health professionals, including psychiatrists and clinical psychologists.

Obindo further advised borrowers not to conceal their financial difficulties from trusted relatives or partners, noting that discussing the problem could help them obtain support before the pressure becomes overwhelming.

Loan recovery pressure raises concern

Another psychiatrist, Dr Samuel Aladejare, said the circumstances surrounding personal borrowing could contribute to emotional distress, particularly when borrowers are unable to repay their debts.

According to Aladejare, some Nigerians turn to personal loans to meet basic expenses when their income is insufficient to cover rising costs.

He said repeated calls and messages from debt collectors could intensify the pressure on borrowers and affect their sense of dignity and emotional well-being.

Aladejare explained that people subjected to frequent collection calls could eventually become anxious whenever their phones ring.

He advised Nigerians to exercise financial caution and avoid borrowing from lenders whose interest rates and repayment conditions could make existing financial difficulties worse.

The psychiatrists’ warnings come amid concerns about the relationship between household debt and mental health.

What research says about debt and mental health

Research has established an association between financial indebtedness and poor mental health, although the relationship is complex.

A systematic review published in Clinical Psychology Review examined 65 studies on personal unsecured debt and health. The researchers found that more severe debt was generally associated with worse health outcomes, particularly depression and other mental health difficulties.

The review also reported associations between debt and substance-related problems. However, the researchers noted that limitations in the available evidence made it difficult to establish whether debt directly caused particular health conditions in every case.

A separate systematic review published in BMC Public Health examined 33 peer-reviewed studies and found that people with unmet loan payments were more likely to report depression and suicidal thoughts than those without similar financial problems.

The findings highlight the potential health consequences of persistent financial hardship, particularly when borrowers have limited resources to meet their obligations.

They do not mean that every person who takes a loan will develop a mental health condition. The effects depend on individual circumstances, the level of financial pressure and other social and personal factors.

Personal borrowing and Nigeria’s economy

The PUNCH report also cited figures from the Central Bank of Nigeria’s May 2026 Economic Report, stating that outstanding personal loans reached approximately N2.06tn during the month.

According to the figures reported by PUNCH, total consumer credit increased from N3.13tn in April to N3.18tn in May 2026, while personal loans accounted for 64.78 per cent of the May total.

The figures suggest that personal borrowing represented a substantial proportion of reported consumer credit during the period. However, the underlying CBN report should be consulted directly to confirm the figures and their definitions before publication.

An increase in outstanding loans does not, by itself, establish that borrowers are unable to repay their debts or that borrowing has caused a deterioration in mental health.

Nevertheless, the psychiatrists’ comments draw attention to the difficulties people may face when borrowing becomes a means of meeting recurring expenses without a realistic repayment plan.

The concerns also extend to loan recovery practices. Obindo alleged that some predatory lenders misuse borrowers’ photographs and personal information and engage in abusive recovery practices. These allegations were reported in the PUNCH interview and were not independently established in this research.

For borrowers already experiencing financial distress, the specialists’ advice is to avoid worsening the situation through harmful coping strategies and to seek appropriate support when symptoms persist.

The immediate concern, they said, is not borrowing alone, but the pressure that can arise when people cannot meet their financial obligations and struggle to find a way out.