Nigerians increasingly getting access to more credit and loans

The Credit Conditions Survey report for the second quarter of 2025, published by the Central Bank of Nigeria (CBN), revealed an increase in the supply of credit across secured lending, unsecured lending, and corporate lending, with their respective indices recorded at 0.5, 6.6, and 15.7 points.

Regarding credit demand, the survey indicated a rise in demand for secured lending (9.6 points) and corporate lending (21.1 points), while demand for unsecured lending experienced a decline (-2.2 points). The surge in corporate lending demand was largely attributed to inventory finance, as highlighted in the report. Lenders noted an uptick in default rates for secured, unsecured, and corporate lending.

The overall loan spreads for both secured and unsecured lending rates to households expanded in relation to the Monetary Policy Rate (MPR). Conversely, for corporate lending, the lending rate spreads relative to MPR for all lending types contracted during the review quarter. Despite the improved access to credit, the report pointed out a troubling increase in default rates across all lending categories, especially for corporate loans and small businesses, indicating rising financial vulnerabilities among households and enterprises.

Therefore, there is an urgent necessity for policies that foster affordable credit facilities and more effective loan distribution frameworks. Such initiatives would bolster household liquidity and enhance credit access, ultimately contributing to economic resilience amidst heightened credit risks and financial pressures on borrowers.