The Central Bank of Nigeria -CBN has said that about 91 percent of loans obtained from banks by companies are performing.
In its latest credit conditions survey, the CBN indicated that about nine percent of corporate loans are non-performing, four notches above the apex bank’s regulatory guidance of five per cent.
According to the report, corporate loan default stood at nine per cent in the fourth quarter 2024. It stood at 6.2 per cent in the third quarter, 2.8 per cent in the second quarter and 4.5 per cent in the first quarter of last year.
The CBN outlined the factors contributing to corporate credit demand to include commercial real estate, balance sheet restructuring, inventory finance, capital investments, merger and acquisition. The apex bank said there was increased credit availability for corporate borrowers, while secured lending to households dropped.
CBN stated that the demand for credit across all lending types increased in fourth quarter of last year, stressing that the factors influencing the increase for secured and unsecured household loans were consumer loans from households and credit cards lending from households respectively while inventory finance was the major factor that influenced the change in demand for corporate lending. The apex bank added that the demand for credit increased for all lending types during the period.