Nigerians are increasingly borrowing to build houses — CBN

Nigerians are intensifying their borrowing to acquire personal homes, as indicated by a significant rise in credit for house purchases. In the second quarter of 2026, this credit metric reached 9.6 index points, signaling a strong trend of Nigerians leveraging loans for housing.

The Central Bank of Nigeria's (CBN) Credit Condition Survey Report for Q2 2026 reveals that lenders experienced an increase in credit availability across various lending categories. This includes secured lending, unsecured lending, and corporate lending. Notably, lenders also reported a decline in default rates during the same period, suggesting improved creditworthiness or risk management among borrowers.

Demand for credit also saw an uptick. Respondents indicated that demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending. However, unsecured lending remained relatively subdued, with a figure of -1.2 index points. Within consumer loans to households, credit for house purchases rose by 9.6 index points, while mortgage/re-mortgage lending from households increased by 13.3 index points. Lending for small businesses also saw a substantial increase of 26.4 index points.

Regarding corporate lending, the CBN noted growth in lending to small businesses, Medium Private Non-Financial Corporations (PNFCs), and Large PNFCs, with index points of 26.5, 25.5, and 8.9, respectively. Credit to Other Financial Corporations (OFCs) remained stable at 0.0 index points. The report consistently highlighted a decline in default rates across all lending categories, including secured, unsecured, and corporate lending segments.