The Central Bank of Nigeria (CBN) has reported an enchancment in credit score availability throughout key lending segments within the fourth quarter of 2025, at the same time as lenders recorded larger default charges on loans to households and companies.
The knowledge comes from the CBN’s This autumn 2025 Credit score Situations Survey.
The apex bank famous that whereas total lending situations confirmed combined outcomes, lenders are cautiously increasing entry to credit score regardless of rising compensation dangers.
Credit score tendencies in the course of the quarter reveal each alternatives and challenges for debtors and lenders alike, highlighting the complexity of Nigeria’s monetary panorama.
What the survey is saying
General lending situations mirrored assorted outcomes in This autumn 2025, with households going through larger borrowing prices and company debtors experiencing combined pricing tendencies.
- Spreads on secured and unsecured family loans widened to -10.8 and -2.0 index factors relative to the Financial Coverage Charge (MPR), indicating larger borrowing prices for households.
- For company loans, spreads narrowed for small companies (14.8), massive non-public non-financial companies (PNFCs) (2.9), and different monetary companies (OFCs) (4.3), whereas medium-sized PNFCs noticed a widening unfold of -4.8 index factors, reflecting tighter pricing situations.
- Lenders reported will increase in mortgage defaults throughout secured, unsecured, and company lending classes, signaling persistent compensation challenges.
The information means that though credit score provide improved in some sectors, heightened default charges proceed to pose dangers to total mortgage efficiency.
Backstory
Earlier this month, the CBN reported that non-public sector credit score rose to N74.63 trillion in November 2025, signalling an early rebound in lending exercise following the CBN’s September coverage price lower.
The information exhibits a marginal improve from N74.41 trillion recorded in October.
The information counsel that whereas tight financial situations constrained lending for a lot of the yr, easing coverage alerts are starting to stabilise credit score flows to companies and households.
- Earlier CBN stories highlighted that households usually face constrained borrowing resulting from elevated rates of interest and restricted disposable revenue.
- Company lending has usually benefited from focused coverage measures and liquidity assist, notably for big and small PNFCs.
- Ongoing macroeconomic pressures, together with inflation and rising operational prices for companies, have persistently influenced mortgage efficiency and default tendencies.
What it’s best to know
The This autumn 2025 findings present cautious optimism amongst lenders as they increase credit score whereas monitoring compensation challenges.
Lenders reported that larger credit score availability for secured and company loans was pushed by shifting financial outlooks and strategic market positioning.
In November, the MPC retained the MPR at 27 per cent however adjusted the rate of interest hall.
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