CBN: Loan demand rises as Banks record fewer defaults in Q2 2026
Demand for loans from Nigerian households and businesses strengthened in the second quarter of 2026 as banks increased credit availability and recorded a decline in loan defaults across major lending categories, according to the Central Bank of Nigeria (CBN). The development was contained in the apex bank’s latest Credit Conditions Survey, which provides an assessment […]
The Central Bank of Nigeria (CBN) reported that loan demand increased in the second quarter of 2026 as banks boosted credit availability and saw a drop in loan defaults, according to their latest Credit Conditions Survey. This improvement was seen across various lending categories, with secured lending experiencing the strongest growth, followed by corporate lending and a more modest increase in unsecured lending.
Borrowers, especially households and businesses, showed stronger demand for loans, particularly secured financing and corporate credit. The study also noted a decline in loan defaults, indicating a more favorable lending environment. However, spreads on certain loans, such as those for small businesses and secured household loans, remained relatively high, suggesting that while lending conditions were improving, disparities persisted depending on borrower type and loan nature.
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