Nigerians increased their demand for loans to buy homes, meet household needs and support small businesses in the second quarter of 2026, as lenders also reported improved repayment performance across major categories of credit.

The Central Bank of Nigeria (CBN) disclosed this in its Credit Conditions Survey Report for Q2 2026, which showed increased demand for secured and corporate lending during the period.

According to the apex bank, credit demand for secured lending increased to 15.1 index points, while demand for corporate lending rose to 15.2 index points. Unsecured lending, however, remained subdued at -1.2 index points.

The CBN said, “Respondents reported that credit demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending, while unsecured lending remained subdued at -1.2 index points.”

Household demand for credit increased across several categories during the quarter, including housing.

The CBN reported that consumer loans to households increased to 11.2 index points, while credit for house purchase increased to 9.6 index points. Lending for small businesses by households also increased significantly to 26.4 index points.

Mortgage and re-mortgage lending from households rose to 13.3 index points, pointing to increased demand for financing linked to property purchases and existing mortgages.

The apex bank said: “Consumer loans to households increased (11.2), credit for house purchase to households increased (9.6), lending for small businesses to households increased (26.4).”

It added: “Mortgage/re-mortgage lending from Households increased (13.3).”

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The increase in demand for housing credit comes as buying or building a home remains a significant financial commitment for Nigerian households, making access to mortgage and other forms of property financing an important part of the housing market.

Demand for unsecured household lending was more mixed. The CBN said overdraft and personal loans to households increased to 7.9 index points, while credit card lending declined to -2.0 index points.

Business lending also recorded increases across different categories.

According to the report, demand for credit among small businesses increased to 26.5 index points, while lending to medium-sized private non-financial corporations rose to 25.5 index points. Credit demand among large private non-financial corporations also increased to 8.9 index points.

Credit to other financial corporations, however, remained unchanged at 0.0 index points. The CBN’s figures showed that the increase in credit demand was accompanied by an improvement in loan repayment performance.

The apex bank said lenders reported lower default rates in Q2 2026, with the decline extending across secured and unsecured lending.

“Lenders reported a decline in default rates across secured and unsecured lending, as well as across all corporate lending categories, including small businesses, Medium PNFCs, Large PNFCs, and OFCs,” the CBN said.

The development provides a more positive picture of lending conditions, with households and businesses seeking more credit while lenders reported fewer defaults across major categories.

For households, the strongest increases were recorded in lending for small businesses, consumer loans, mortgage and re-mortgage financing and house purchases. For businesses, the increase in demand was particularly pronounced among small and medium-sized companies.

The latest figures therefore show a credit market becoming more active across household and corporate lending, while reported defaults are moving in the opposite direction.

For Nigerians seeking to finance homes and businesses, the rise in credit demand suggests that borrowing is playing a growing role in funding major household purchases and business activity. At the same time, the decline in reported defaults offers an encouraging signal for lenders as credit activity expands.

Meiza Nigeria