The Central Bank of Nigeria (CBN) reported that household credit for house purchases rose to 9.6 index points in the second quarter of 2026 (Q2 2026), indicating that Nigerians are increasingly borrowing to finance home ownership. This was disclosed in the CBN's Credit Conditions Survey Report for Q2 2026, released on Wednesday, August 12, 2026.
Demand for Secured Loans Rises
According to the report, demand for secured credit increased to 15.1 index points, while corporate lending rose to 15.2 points. In contrast, demand for unsecured lending remained weak at -1.2 index points.
The CBN stated that consumer loans to households increased by 11.2 index points, while credit for house purchases climbed by 9.6 points. Lending to households for small businesses recorded the strongest growth in the category, rising by 26.4 index points.
Unsecured Credit and Credit Cards
For unsecured credit, overdrafts and personal loans to households increased to 7.9 index points. However, household demand for credit cards fell to -2.0 index points.
The report also showed stronger demand for corporate credit across several business categories. Lending to small businesses increased to 26.5 index points, while credit to medium-sized private non-financial corporations (PNFCs) rose to 25.5 points.
Corporate Lending Expands, Defaults Decline
Loans to large PNFCs also increased, reaching 8.9 index points, while credit to other financial corporations (OFCs) remained unchanged at 0.0 index points.
The CBN further reported that lenders recorded lower default rates across both secured and unsecured lending during the quarter. Default rates also declined across all corporate lending categories, including small businesses, medium-sized PNFCs, large PNFCs and other financial corporations.
The findings suggest a growing appetite for credit among Nigerian households and businesses, particularly for home purchases and corporate expansion, despite weak demand for unsecured lending and credit cards.
