Nigerians Increasingly Borrowing to Build Houses — Central Bank

The single sharpest fact is that Nigerians are intensively borrowing to purchase personal houses, with credit demand increasing to 10.7 index points in the second quarter of 2026. The Central Bank of Nigeria, CBN, disclosed this yesterday in its Credit Condition Survey Report for Q2'26. The report noted that lenders indicated an increase in credit availability for secured, unsecured, and corporate lending during the period. Consumer loans to households increased by 11.2, credit for house purchase to households increased by 9.6, and lending for small businesses to households increased by 26.4. Mortgage/re-mortgage lending from Households increased by 13.3. On unsecured lending, the CBN noted that overdraft/personal loans to households increased to 7.9 index points, but credit cards lending from households decreased to -2.0 index points. The apex bank added that lenders reported a decline in default rates across secured and unsecured lending, as well as across all corporate lending categories, including small businesses, Medium Private Non-Financial Corporations (PNFCs), Large PNFCs, and Other Financial Corporations (OFCs). The report revealed that credit demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending. The CBN also noted that credit to Other Financial Corporations, OFCs, remained unchanged at 0.0 index point.

Economy

The increasing demand for credit, especially for housing and small businesses, is a positive sign for the economy. It indicates that Nigerians are becoming more confident in their financial decisions and are willing to invest in their homes and businesses. However, the report also highlights the need for lenders to be more cautious and ensure that borrowers have the means to repay their loans. The CBN's report is a timely reminder that the economy is still recovering from the effects of the pandemic and that there is still a long way to go in terms of economic growth and development. Yet, it is also a testament to the resilience of the Nigerian people and their ability to adapt to changing circumstances.