The Central Bank of Nigeria (CBN) has said that the supply of secured credit to households increased in Q3 2019 and is expected to increase in the next quarter, adding that the development was due to improved market share.
The apex bank, which disclosed this in its Credit Conditions Survey Report for Q3 2019 posted on its website yesterday, also stated that the availability of unsecured credit to households increased in Q3 2019, but it is, however, expected to decrease in Q4 2019.
According to the report, the overall availability of credit to the corporate sector decreased in Q3 2019 but was expected to increase in the next quarter as a result of capital market pressure.
The report further disclosed that demand for secured lending for house purchase decreased in Q3 2019, but lenders expect demand to increase in the next quarter.
“The proportion of loan applications approved increased even though lenders maintained the credit scoring criteria,” the report stated.
It, however, stated that demand for total unsecured lending from households increased in the current quarter, and is expected to increase in the next quarter.
“In spite of lenders’ resolve to retain the credit scoring criterion, the proportion of approved unsecured loan applications increased in the current quarter and is expected to further increase in the next quarter,” the CBN said.
In addition, the CBN survey shows that lenders reported increased demand for corporate credit from all firm sizes in Q3 2019 and they also expect increased demand from all firm sizes in the next quarter.