₦airaland Forum

Nigerians are increasingly turning to bank loans to finance home purchases, with household credit for house acquisition recording a notable increase in the second quarter of 2026.

The Central Bank of Nigeria (CBN) disclosed this in its Credit Conditions Survey Report for the second quarter of 2026, which showed stronger demand for several categories of credit during the period.

According to the apex bank, demand for credit to purchase houses by households rose to 9.6 index points in Q2 2026, reflecting increased borrowing by Nigerians to acquire residential properties.

The CBN also reported that demand for secured lending rose to 15.1 index points, while corporate lending increased to 15.2 index points during the quarter. However, demand for unsecured lending remained weak, standing at -1.2 index points.

The report stated that consumer loans to households increased by 11.2 index points, while lending for small businesses owned by households recorded a stronger increase of 26.4 index points.

Mortgage and re-mortgage lending to households also expanded, rising to 13.3 index points during the review period.

On unsecured credit, the CBN said demand for overdrafts and personal loans among households increased to 7.9 index points. In contrast, credit card lending declined to -2.0 index points.

The survey further showed stronger demand for credit among businesses. Lending to small businesses increased to 26.5 index points, while credit to medium-sized private non-financial corporations rose to 25.5 index points.

Loans to large private non-financial corporations also increased, reaching 8.9 index points.

However, lending to other financial corporations remained unchanged at 0.0 index points during the quarter.

The CBN said the increase in borrowing was accompanied by an improvement in loan repayment performance, as lenders reported lower default rates across several categories.

“Lenders reported a decline in default rates across secured and unsecured lending, as well as across all corporate lending categories, including small businesses, Medium PNFCs, Large PNFCs and OFCs,” the report stated.

The latest figures suggest that despite persistent economic pressures, households and businesses are increasingly relying on formal credit to finance housing, personal needs and business activities.

The rise in mortgage-related borrowing also points to growing demand for housing finance as more Nigerians seek access to credit to acquire or refinance residential properties.

tobenuel:
What's APC slogan sef, someone remind me

Estello:
https://applesbite.com/cbn-nigerians-borrow-more-to-buy-homes-as-household-credit-rises/

Lush100:
Another grammar.

The way media information is being flapped everywhere.
You will think the economy is booming.
But again.
Let hope the carnage will not be too late

nairalanda1:
What the report is describing is called a mortgage. It's how many nigerians finance the building of their houses. Nothing to do with APC tho. Infact it is not even a sign of whether the economy is good or bad, just the normal thing in many countries

Government cannot build house for everyone, even if we had good government in Nigeria. IN saner climes, you either get a loan or credit or mortgage from a mortgage bank or even a normal commerical bank or you are lucky to inherit millions from your rich parent if you have one, or you inherit house.

Report is saying that more nigerians are borrowing to build houses.

nairalanda1:
LOL, it's not grammar. NIgerians have been borrowing to build houses long before tinubu was in power. And if an APC data boy wants to use the thing for propaganda, the increase is by 9.6%, which is not much by the way.

Hope you know say many nigerians take loans to build house o. The ones that do not take are either very rich, or have bad credit, or are hoping to inherit. And they have been doing it for decades.

Lush100:
No.

It is the rich that takes loans to buy anything.

The way the information was announced looked like an emergence of new sub-sector of home.grown housing loan to bank productivity had break forth.
But when you consider inflation.
There's nothing apparent distinct in the info aside the sensilization of the headline.

But again...let's congratulate the information.
I wish Nigeria well.