The Central Bank of Nigeria (CBN) has reported an improvement in credit availability across key lending segments in the fourth quarter of 2025, even as lenders recorded higher default rates on loans to households and businesses.
The information comes from the CBN’s Q4 2025 Credit Conditions Survey.
The apex bank noted that while overall lending conditions showed mixed outcomes, lenders are cautiously expanding access to credit despite rising repayment risks.
Credit trends during the quarter reveal both opportunities and challenges for borrowers and lenders alike, highlighting the complexity of Nigeria’s financial landscape.
Overall lending conditions reflected varied outcomes in Q4 2025, with households facing higher borrowing costs and corporate borrowers experiencing mixed pricing trends.
The data suggests that although credit supply improved in some sectors, heightened default rates continue to pose risks to overall loan performance.
Earlier this month, the CBN reported that private sector credit rose to N74.63 trillion in November 2025, signalling an early rebound in lending activity following the CBN’s September policy rate cut.
The data shows a marginal increase from N74.41 trillion recorded in October.
The data suggest that while tight monetary conditions constrained lending for most of the year, easing policy signals are beginning to stabilise credit flows to businesses and households.
The Q4 2025 findings show cautious optimism among lenders as they expand credit while monitoring repayment challenges.
Lenders reported that higher credit availability for secured and corporate loans was driven by shifting economic outlooks and strategic market positioning.
In November, the MPC retained the MPR at 27 per cent but adjusted the interest rate corridor.