Daily Insight: Q 2-18 Credit Conditions Survey Report


Nigeria’s real sector continued to improve in Q2-18, signalled by the Central Bank of Nigeria’s Credit Conditions Survey Report for the period. According to the reading, the availability of secured and unsecured credit to households increased during the period, thanks to an improved liquidity position, a higher appetite for risk by lenders, who were willing to lend at low Loan to Value (LTV) ratios (75% or less) and increased availability of funds.

On the demand side, there was also an increase in the demand for secured and unsecured lending from households. Loan performance – measured by default rates, showed marked improvements for secured loans. However unsecured loan performance to households deteriorated during the review period as Lenders experienced higher default rates on credit card lending.

Looking into the second half of 2018, the primary theme that would guide credit supply to households include the near-term expectation for the CBN to cut rates, as the FG’s move to bring the debt composition to 60%/40%, which currently stands at 70%/30%, gives room for more credit demand to be met.


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