The Central Bank of Nigeria (CBN) says credit availability improved across key lending segments in the fourth quarter of 2025, even as loan defaults increased among households and businesses.
The findings, contained in the CBN’s Q4 2025 Credit Conditions Survey, show that banks are cautiously expanding lending while managing heightened repayment risks.
- Household borrowing costs rose, with spreads on secured and unsecured loans widening to -10.8 and -2.0 index points, respectively, relative to the Monetary Policy Rate (MPR).
- Corporate loan pricing improved for small businesses, large private non-financial corporations, and other financial firms, but tightened for medium-sized companies.
- Loan defaults increased across secured, unsecured, and corporate lending categories.
The CBN recently reported that private sector credit rose to ₦74.63 trillion in November 2025, signalling a gradual rebound following the September 2025 policy rate cut.
The survey highlights the challenge facing banks: supporting economic activity while containing rising credit risk, amid inflation and weak borrower cash flows.
