CBN Survey: Banks Ease Credit Access as Loan Demand Rises in Q3 2026

Nigerian banks expanded credit availability and reported stronger loan demand across secured, unsecured and corporate lending in the third quarter of 2026, the Central Bank of Nigeria said in its Q3 2026 Credit Conditions Survey. The survey also showed higher loan approval rates and changes in lending-rate spreads relative to the Monetary Policy Rate.

Loan demand indices

Secured lending demand stood at 25.6. Consumer loans to households recorded 42.9, credit for house purchases 28.0 and mortgage or re-mortgage lending 12.0. Lending to small businesses by households declined, with an index of -19.7. Banks said the key drivers for secured loans were changing economic outlook, liquidity positions and market share objectives.

Unsecured lending demand was 7.2. Overdrafts and personal loans to households increased, recording 24.7, while credit card lending declined to -20.0. The expansion in unsecured credit was supported by market share objectives, changing economic outlook, and the cost and availability of funds.

Corporate lending demand stood at 18.9. Lending to small businesses, medium-sized private non-financial corporations and large PNFCs recorded 22.6, 18.3 and 20.7, respectively. Credit to other financial corporations declined to -16.2. Banks identified inventory finance, balance sheet restructuring and capital investments as the main factors supporting increased demand for corporate loans, with indices of 18.6, 2.5 and 0.7, respectively.

Approvals, spreads and defaults

The proportion of loan approvals increased across secured, unsecured and corporate lending compared with the previous quarter. However, the spread between lending rates and the MPR widened in several categories during Q3 2026.

The spread on secured lending widened to -14.5 index points. Corporate lending also recorded wider spreads: medium-sized PNFCs at -13.6 index points, OFCs at -12.2 index points, small businesses at -11.0 index points and large PNFCs at -10.3 index points. The spread between unsecured lending rates and the MPR remained unchanged during the quarter.

The survey reported lower default rates across secured, unsecured and corporate lending categories. These included loans to small businesses, medium-sized and large PNFCs, and OFCs.

Private sector credit and policy

Credit to the private sector fell to N83.93 trillion in September 2026, down from N84.47 trillion in August. The decline followed the CBN’s decision to reduce the benchmark MPR by 350 basis points to 23% at its 307th Monetary Policy Committee meeting in September 2026.

The MPC also adjusted the interest rate corridor around the MPR to +50 and -300 basis points, while retaining key reserve requirements. The Cash Reserve Requirement for commercial banks remained at 45%, for merchant banks at 16%, and on non-Treasury Single Account public-sector deposits at 75%.

Credit conditions have remained a concern for businesses, particularly manufacturers. The Manufacturers Association of Nigeria previously reported that bank credit to the manufacturing sector fell by N1.92 trillion, from N8.53 trillion in December 2024 to N6.61 trillion in December 2025. The Centre for the Promotion of Private Enterprise has also cautioned the CBN against further interest rate increases, arguing that additional monetary tightening could weaken economic recovery and increase pressure on businesses and households.