The Central Bank of Nigeria (CBN) has reported improved credit availability across key lending segments in the fourth quarter of 2025, even as banks recorded higher default rates on loans to households and businesses.
Okay News reports that the findings, detailed in the CBN’s Q4 2025 Credit Conditions Survey, show lenders cautiously expanding access to credit despite growing repayment risks.
Overall lending conditions presented 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 increased borrowing costs for households.
For corporate loans, spreads narrowed for small businesses (14.8), large private non-financial corporations (PNFCs) (2.9), and other financial corporations (OFCs) (4.3), while medium-sized PNFCs saw a widening spread of -4.8 index points.
Lenders reported increases in loan defaults across secured, unsecured, and corporate lending categories, signalling persistent repayment challenges.
The data reflects the delicate balance banks face between supporting economic growth and managing heightened credit risk amid ongoing macroeconomic pressures.
The survey follows the CBN’s September 2025 decision to cut the Monetary Policy Rate by 50 basis points to 27 per cent, with the rate held steady in November alongside adjustments to the interest rate corridor.
These policy moves aimed to encourage lending while maintaining stability.
The Q4 findings suggest that while credit supply has improved in some areas, elevated default rates continue to pose risks to loan performance and overall financial sector health.
 has reported improved credit availability across key lending segments in the fourth quarter of 2025, even as banks recorded higher default rates on loans to households and businesses.){kind=link}