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The fourth quarter (Q4) 2018 credit condition survey for households, small businesses and corporate entities indicated an increase in availability of secured credit to households and corporates entities, and increased availability of unsecured credits to households, the latest Credit Condition Survey report from the Central Bank of Nigeria (CBN) has shown.
The report stated that the availability of secured credit to households increased in Q4 2018 and was expected to increase in the next quarter. “Improving economic outlook was the major factor for the increase in secured credit. Lenders reported that the availability of unsecured credit to households increased in Q4 2018, and it is expected to increase in Q1 2019. Most lenders adduced market share objectives for this increase.”
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Also, the overall availability of credit to the corporate sector increased in Q4 2018 and was expected to increase in the next quarter and favourable economic conditions was the major factor contributing to the increase.
The report presents the results of the Q4 2018, survey which was conducted from November 19 – 23, 2018. The results was based on lenders’ own responses to the survey, and do not necessarily reflect the Bank’s views on credit conditions
But on the demand side, demand for secured lending for house purchase decreased in Q4 2018, but more lenders expect demand for secured lending to increase in the next quarter
“Demand for total unsecured lending from households increased in the current quarter, and was expected to increase in the next quarter. Despite lenders’ resolve to leave the credit scoring criteria unchanged, the proportion of approved unsecured loan applications increased in the current quarter, and was expected to increase in the next quarter,”
“Lenders reported increased demand for corporate credit from all firm sizes except for Other Non financial Corporations in Q4 2018. They however expect increased demand from all firm sizes in the next quarter,” the report stated.
BUNMI BAILEY
