Nigerians Take More Loans to Buy Houses as CBN Reports Rising Credit Demand in 2026
- Household credit for buying homes rose to 9.6 index points in Q2 2026, showing increased borrowing for house purchases
- The CBN said demand for secured and corporate loans increased, while unsecured lending remained weak
- Lenders also reported lower loan default rates across household and corporate lending categories
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Credit extended to households for house purchases rose to 9.6 index points in the second quarter of 2026 (Q2 2026), suggesting stronger borrowing by Nigerians to finance home ownership.
The Central Bank of Nigeria (CBN) disclosed this in its Credit Conditions Survey Report for Q2 2026, released on Wednesday, August 12, 2026, according to Vanguard.
Source: Getty Images
The apex bank said lenders reported increased availability of credit for secured, unsecured and corporate lending during the quarter, while default rates declined.
Demand for secured loans rises
According to the report, demand for secured credit increased to 15.1 index points, while corporate lending rose to 15.2 points. Demand for unsecured lending, however, remained weak at -1.2 index points.
The CBN said consumer loans to households increased by 11.2 index points, while credit for house purchases climbed by 9.6 points.
Lending to households for small businesses recorded the strongest growth in the category, rising by 26.4 index points.
For unsecured credit, overdrafts and personal loans to households increased to 7.9 index points. However, household demand for credit cards fell to -2.0 index points.
Corporate lending expands, defaults decline
The report also showed stronger demand for corporate credit across several business categories. Lending to small businesses increased to 26.5 index points, while credit to medium-sized private non-financial corporations (PNFCs) rose to 25.5 points.
Loans to large PNFCs also increased, reaching 8.9 index points, while credit to other financial corporations (OFCs) remained unchanged at 0.0 index points.
The CBN further reported that lenders recorded lower default rates across both secured and unsecured lending during the quarter.
Default rates also declined across all corporate lending categories, including small businesses, medium-sized PNFCs, large PNFCs and other financial corporations.
Nigerian households, businesses hold more money to spend
In related news, Legit.ng earlier reported that Nigeria's broad money supply increased, showing that liquidity in the economy continued to grow despite the CBN's tight monetary policy.
The increase was mainly driven by higher domestic assets, savings, and time deposits, while cash held outside the banking system declined.
The growth in money supply comes after the CBN retained the MPR, although analysts warn that rising liquidity could make it harder to control inflation.
Source: Legit.ng
