Nigerians are increasingly borrowing to build houses — CBN
Credit Availability Rises Amid Low Default Rates in Nigeria
By Elizabeth Adegbesan
Nigerians are increasingly borrowing to purchase homes, as credit for house purchases rose to 9.6 index points in the second quarter of 2026, according to the Central Bank of Nigeria (CBN). This figure reflects growing consumer interest in home ownership.
The CBN released its Credit Condition Survey Report for the second quarter, revealing that lenders reported an increase in credit availability across various categories, including secured, unsecured, and corporate lending.
Additionally, the report noted a decline in default rates for loans during the same period.
According to the survey, credit demand increased by 15.1 index points for secured lending and 15.2 index points for corporate lending. In contrast, demand for unsecured lending remained low at -1.2 index points.
Key findings from the report included:
- Consumer loans to households increased by 11.2 index points.
- Credit for house purchases grew by 9.6 index points.
- Lending for small businesses rose significantly, reaching 26.4 index points.
- Mortgage and re-mortgage lending from households also saw an increase at 13.3 index points.
In the category of unsecured lending, personal loans and overdrafts to households increased to 7.9 index points, while credit card lending dropped to -2.0 index points.
On the corporate side, lending to small businesses rose to 26.5 index points, while medium private non-financial corporations (PNFCs) and large PNFCs saw increases of 25.5 and 8.9 index points, respectively. However, credit to other financial corporations remained unchanged at 0.0 index points.
The CBN indicated a consistent decrease in default rates across both secured and unsecured lending, as well as in all corporate lending categories, including small businesses, medium PNFCs, large PNFCs, and other financial corporations.
