The Central Bank of Nigeria (CBN) has reported a notable increase in borrowing by Nigerians to acquire personal homes, with credit for house purchases rising to 9.6 index points in the second quarter of 2026 (Q2'26). This disclosure was made in the apex bank's Credit Condition Survey Report for Q2'26, which highlighted an overall growth in credit availability across secured, unsecured, and corporate lending categories.
Key Findings from the CBN Credit Condition Survey
According to the report, financial institutions reported an overall growth in credit availability during the period. Lenders also recorded lower default rates across major categories, indicating improved credit conditions. The survey, which gathers responses from major financial institutions, provides insights into the credit market's direction.
Respondents indicated that credit demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending, while unsecured lending remained subdued at -1.2 index points. This suggests that borrowers are increasingly seeking secured loans, likely due to favorable terms or economic factors.
Household Credit Demand Rises
Within the household segment, consumer loans increased to 11.2 index points, credit for house purchases rose to 9.6 index points, mortgage or re-mortgage lending grew to 13.3 index points, and small business lending to households increased to 26.4 index points. These figures indicate a strong appetite for credit among households, particularly for housing-related purposes.
Regarding unsecured household credit, demand for overdraft facilities and personal loans grew to 7.9 index points, whereas credit card lending from households declined to -2.0 index points. The decline in credit card lending may reflect changing consumer preferences or tighter conditions in that segment.
Corporate Credit Demand Expands
In the corporate sector, credit demand expanded across various business sizes, rising to 26.5 index points for small businesses, 25.5 index points for Medium Private Non-Financial Corporations (PNFCs), and 8.9 index points for Large PNFCs. This broad-based increase suggests that businesses are seeking more credit to fund operations or expansion.
Meanwhile, credit demand for Other Financial Corporations (OFCs) remained unchanged at 0.0 index points, indicating stability in that segment.
Default Rates Decline Across Categories
The apex bank added that commercial lenders observed a widespread decline in default rates across secured and unsecured loans, as well as throughout all corporate borrower categories, including small businesses, medium and large PNFCs, and OFCs. This positive trend suggests that borrowers are managing their debts effectively, which could encourage further lending.
The report's findings come amid broader economic developments in Nigeria, where housing finance remains a critical need. The increase in borrowing for house purchases may reflect rising property costs or a growing middle class seeking homeownership.
As Nigeria continues to address its housing deficit, the CBN's credit condition survey provides a valuable barometer for policymakers and market participants. The uptick in household borrowing for houses aligns with government initiatives to boost homeownership, though affordability remains a challenge for many.
Overall, the Q2'26 Credit Condition Survey indicates a healthy credit environment, with increased demand and lower defaults. However, the subdued unsecured lending and decline in credit card usage suggest areas that may require attention from financial institutions.
