The Central Bank of Nigeria (CBN) has reported a notable increase in credit availability across Secured, Unsecured, and Corporate lending segments in the second quarter of 2025, according to its latest Credit Conditions Survey Report released by the Statistics Department of the Economic Policy Directorate.
The increase in credit availability during the review period was largely attributed to the changing economic outlook, particularly influencing Secured and Corporate lending. In contrast, a growing appetite for risk was identified as the key factor driving improved access to Unsecured lending.
The report highlights that lenders observed a rise in credit demand for both Secured and Corporate lending, while demand for Unsecured credit declined. However, some segments saw weakening interest, specifically, demand for secured mortgage/re-mortgage lending by households and unsecured credit card lending by households.
In terms of pricing, the spread on lending rates to households for both Secured and Unsecured credit widened relative to the Monetary Policy Rate (MPR). For Corporate lending, however, spreads narrowed across all business types, signaling more favorable borrowing terms for companies.
Despite the positive trend in credit access, the survey also revealed a rise in default rates across lending categories. Households reported increased defaults in both Secured and Unsecured borrowing, while businesses ranging from Small and Medium Enterprises (SMEs) to Large Private Non-Financial Corporations (PNFCs) and Other Financial Corporations (OFCs) also experienced higher loan default rates.
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