By Olivia Hart

Nigerian household consumer-loan demand rose 42.9 index points in Q3 2026, the strongest increase among household lending categories in the Central Bank of Nigeria’s Credit Conditions Survey Report. For lenders, the quarter shows a broad increase in credit demand rather than a marginal pickup.

Where did household borrowing strengthen?

Credit for house purchases rose by 28.0 index points. Demand for overdrafts and personal loans advanced by 24.7 points, while mortgage and remortgage lending gained 12.0 points. Credit-card lending moved in the opposite direction, with demand down 20.0 index points.

For banks, the pattern indicates broad household credit appetite, but not an even rush for every product. The credit-card contraction requires a separate read from the consumer-loan surge.

What did corporate borrowers request?

The CBN said: “Respondent banks reported increase in credit demand across secured credit (including all its lending types), unsecured (including all its types) and all corporate lending types in Q3 2026.” The survey recorded higher corporate credit demand, particularly among small, medium-sized and large businesses.

Demand from small businesses rose 22.6 index points, ahead of large private non-financial corporations at 20.7 points. Medium-sized private non-financial corporations recorded an 18.3-point increase.

Other financial corporations moved against the trend, with credit demand down 16.2 index points. Household lending to small businesses also fell by 19.7 points.

For lenders, the mix favours business borrowers while exposing two pockets of contraction. Corporate credit expansion therefore cannot be read uniformly across sectors or company sizes.

What drove corporate borrowing?

Inventory financing led the factors lifting corporate loan demand, posting an 18.6-point index reading. Balance-sheet restructuring followed at 2.5 points, while capital investment registered 0.7 points.

The ordering matters for business lending because inventory financing outpaced both restructuring and capital investment. That places inventory funding at the centre of the reported corporate credit increase.

Why did banks expand credit supply?

The CBN stated: “Lenders indicated increase in overall credit availability in Q3 2026 across secured, unsecured and the corporate lending types.” Banks also reported a higher proportion of loan approvals across those categories than in the preceding quarter.

For secured credit, lenders cited changes in the economic outlook, liquidity positions and market-share objectives. Unsecured credit followed a similar pattern: market-share objectives, changes in the economic outlook, and the cost and availability of funds.

Corporate lending supply reflected lenders’ risk appetite, sector-specific risks and market-share objectives. The drivers differ by asset class, but all three categories moved toward greater credit provision.

What do spreads and defaults show?

Despite broader availability, the spread between secured lending rates and the Monetary Policy Rate widened to -14.5 index points. Corporate spreads also widened: -13.6 points for medium-sized businesses, -12.2 for other financial corporations, -11.0 for small businesses and -10.3 for large businesses. The spread on unsecured lending remained unchanged.

The survey also recorded lower default rates across secured, unsecured and corporate lending categories. That combination—more approvals, lower defaults and wider negative spreads—shows lenders expanding access without reporting deterioration in borrower performance.