Nigerian commercial banks expanded credit availability across major lending categories in the second quarter (Q2) of 2026 as loan default rates declined and borrowing demand strengthened.
According to the Central Bank of Nigeria (CBN) Q2 2026 Credit Conditions Survey, lenders increased credit supply across secured, unsecured, and corporate segments following improved economic expectations and enhanced bank liquidity.
Secured lending availability led the expansion with a net index of 24.2 points. Corporate credit availability rose to 20.4 index points, while unsecured lending supply grew moderately to 10.5 index points.
Corporate loan demand grew to 15.2 index points, driven primarily by balance sheet restructuring at 24.0 index points and capital investments at 17.0 index points. Secured credit demand reached 15.1 index points.
Conversely, unsecured consumer loan demand contracted to -1.2 index points due to reduced credit card usage. Participating financial institutions simultaneously recorded lower default rates across secured, unsecured, and corporate borrower categories.
Lending spreads relative to the benchmark interest rate compressed to 7.8 index points for unsecured household loans, 4.7 index points for large corporations, and 5.0 index points for medium enterprises.
The credit expansion coincided with the CBN retaining its Monetary Policy Rate at 26.5% in July 2026, while adjusting its corridor to +50/-450 basis points to encourage bank lending.
For businesses, expanding credit supply and narrowing spreads lower real-sector borrowing costs, creating a favorable window for medium and large enterprises to refinance expensive debt and fund long-term capital projects.
