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.
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