Nigerians Turn to Bank Loans for More Nigerians are turning to bank loans to finance home purchases as rising property costs and household financial pressures push demand for housing credit higher, with the Central Bank of Nigeria (CBN) reporting a 9.6 index-point increase in household credit for house purchases in the second quarter of 2026.
The apex bank disclosed this in its Credit Condition Survey Report for Q2 2026, noting that lenders reported increased credit availability across secured, unsecured and corporate lending during the period.
The CBN also reported a decline in default rates, indicating an improvement in loan performance across major lending categories.
According to the report, credit demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending, while demand for unsecured lending remained subdued at -1.2 index points.
The apex bank said consumer loans to households increased to 11.2 index points, while credit for house purchases rose to 9.6 index points. Lending to small businesses by households recorded a stronger increase of 26.4 index points.
Similarly, mortgage and re-mortgage lending to households increased to 13.3 index points, further highlighting the growing reliance on formal credit to meet housing needs.
On unsecured lending, the CBN said overdraft and personal loans to households increased to 7.9 index points, while credit-card lending declined to -2.0 index points.
The survey also showed sustained demand for corporate credit. Lending to small businesses, medium private non-financial corporations (PNFCs) and large PNFCs increased to 26.5, 25.5 and 8.9 index points, respectively.
However, credit to other financial corporations remained unchanged at 0.0 index point.
On loan performance, the CBN said lenders reported lower default rates across secured and unsecured lending, as well as across all corporate lending categories.
It said default rates declined among small businesses, medium-sized PNFCs, large PNFCs and other financial corporations.
The increase in housing credit comes against the backdrop of rising property and construction costs, which have made homeownership increasingly challenging for many Nigerian households.
The growing demand for housing finance suggests that access to affordable and sustainable mortgage and housing credit could play a significant role in helping more Nigerians achieve homeownership.
The CBN figures also indicate that households and businesses continue to depend on formal credit to finance housing, consumption and productive activities despite prevailing economic pressures.
