The Central Bank of Nigeria (CBN) has reported an improvement in credit availability across key lending segments in the fourth quarter of 2025, despite rising loan defaults.
According to the CBN’s Q4 2025 Credit Conditions Survey, lenders are cautiously expanding access to credit amidst repayment risks.
Overall lending conditions showed mixed outcomes, with households facing higher borrowing costs and corporate borrowers experiencing varied pricing trends.
Spreads on secured and unsecured household loans widened to -10.8 and -2.0 index points relative to the Monetary Policy Rate (MPR), indicating higher borrowing costs for households.
In contrast, corporate loans saw narrowed spreads for small businesses, large private non-financial corporations (PNFCs), and other financial corporations (OFCs).
Lenders reported increased loan defaults across secured, unsecured, and corporate lending categories, signaling persistent repayment challenges.
The data suggests that although credit supply improved in some sectors, heightened default rates pose risks to overall loan performance.
The CBN’s September 2025 policy rate cut has led to a marginal increase in private sector credit, rising to N74.63 trillion in November 2025.
However, ongoing macroeconomic pressures, including inflation and rising operational costs, continue to influence loan performance and default trends.
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