Key Takeaways
- Credit for house purchase by households increased to 96 index points in Q2'26
- Lenders reported lower default rates across secured, unsecured, and corporate lending
- Credit availability for secured, unsecured, and corporate lending increased during the period
Credit for house purchase by households in Nigeria has seen a significant increase, rising to 96 index points in the second quarter of 2026 (Q2'26), as indicated by the Central Bank of Nigeria's Credit Condition Survey Report. This suggests that Nigerians are increasingly taking out loans to purchase personal houses, with credit demand on the rise.
According to the report, lenders have reported an increase in credit availability for secured, unsecured, and corporate lending during the period. The data shows that consumer loans to households have increased, with credit for house purchase and lending for small businesses to households also seeing significant rises. Additionally, mortgage/re-mortgage lending from households increased substantially.
In terms of unsecured lending, while overdraft/personal loans to households increased, credit cards lending from households decreased. On the corporate side, lending to small businesses, Medium Private Non-Financial Corporations (PNFCs), and Large PNFCs all saw increases, although credit to Other Financial Corporations (OFCs) remained unchanged.
Default Rates and Credit Trends
Despite the increase in lending, lenders have reported a decline in default rates across all categories, including secured and unsecured lending, as well as corporate lending. This trend is significant, as it suggests that borrowers are managing their debt effectively and that lenders are becoming more confident in their lending practices.
Why This Matters
The increase in credit availability and the decrease in default rates are positive indicators for Nigeria's economy, suggesting that the country's financial sector is becoming more stable and that households and businesses are gaining better access to credit facilities. As a result, this trend is likely to have a positive impact on the country's economic growth and development.