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The Central Bank of Nigeria has released its Q1 2018 credit conditions survey report. Here are key points from the report

  • The overall availability of credit to the corporate sector increased in Q1 2018 and is expected to increase in Q2 2018.
  • This was driven by brighter economic outlook, changing sector-specific risks, changing appetite for risk, tight wholesale funding conditions and market share objectives.
  • Commercial banks experienced higher default rates on credit card loans and overdrafts/personal lending to households in the first quarter ending 31st March 2018.
  • Households demand for consumer loans rose in the current quarter and is expected to rise in the next quarter.

Despite lenders’ resolve to tighten the credit scoring criteria for total unsecured loan applications in the review quarter, the proportion of approved total loan applications for households increased.

  • Demand for mortgage/remortgaging from households also rose in Q1 2018 and is expected to rise in Q2 2018.
  • Lenders reported that the prevailing commercial property prices negatively influenced loan availability to the commercial real estate sector in the current quarter.

Similarly, lenders expected the prevailing commercial property prices to negatively influence secured lending to Public Non-Financial Corporations in the current quarter.

The credit condition survey report covers secured and unsecured lending to households, lending to Public Non-Financial Corporations (PNFCs), small businesses and other NonFinancial Corporations (OFCs) in the quarter under review.

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