Access to credit finance for households and companies improved, according Central Bank of Nigeria (CBN) report for quarter last year.

Banks increased lending to meet higher demand for loans for mortgages, overdrafts, inventory and capital investments.

The fourth quarter 2025 Credit Conditions Survey (CCS) Report released yesterday by the CBN indicated increases in demand, supply and approval for loans across personal and corporate credits.

The survey- which covered the three-month period ended December 31, 2025 – was coordinated by the Statistics Department of the Economic Policy Directorate of the CBN.

The Credit Conditions Survey (CCS) is based on application of questionnaires across lenders and it report on secured and unsecured lending to households, private non-financial corporations (PNFCS), small businesses and other financial corporations (OFCs).

In the latest survey, which was conducted in November 2025, banks indicated a rise in credit availability for secured, unsecured, and corporate lending.

According to the report, the increase in credit availability was attributed to the changing economic outlooks and market share objectives for secured and corporate lending.

“For unsecured credit availability, the main factors affecting increase in credit were attributed to changing economic outlook and changing cost and availability of fund,” the CCS report stated.

The report also showed general improvement in demand for credit increased for secured, unsecured and corporate lending.

“All the demand for lending types reportedly increased in fourth quarter 2025, except for demand for credit to OFCs, which remained unchanged,” the report stated.

A breakdown indicated that consumer loans to households, credit for house purchase to households, mortgage and re-mortgage lending from households, lending for small businesses to households, credit cards lending from households and overdraft and personal loans to households all increased during the period.

Besides, lending to small businesses and medium and large private non-financial companies, specifically real sector operators, increased during the period. However, credit to other financial companies remained unchanged

The report stated that “inventory finance and capital investments were reported as the major factors that influenced the increase in demand for corporate lending”, corroborating other reports that showed improved confidence in the economy by chief executives and investors.

The survey however showed that banks were more willing to lend to individual and corporate consumers with collaterals.

The percentage of loan approvals for secured credit rose by 14.3 per cent while approvals for corporate lending increased by 26.1 per cent. However, approval for unsecured lending dropped by 3.9 per cent.

Besides, banks appeared willing to offer lower interest rates to most corporate borrowers but rather increased lending rates on secured and unsecured lending rates to households.

However, during the period, banks reported higher default rates for secure, unsecured and all corporate lending types, raising concerns about the disparity between the tendency to borrow and willingness to pay.

A three-year data analysis provided by the CCS report showed consistent tendency to higher default rates, which underlined the need for banks and financial services regulators to further interrogate the disparity between credit access and fidelity to terms and conditions.

As against the case with factors affecting increase in credit, the CCS report however did not provide reasons for reported higher default rates. (The Nation)