In the fourth quarter of 2025, Nigerian banks reported a rise in corporate and household loan defaults, which is indicative of mounting repayment strain on both individuals and businesses.

In its Credit Conditions Survey Report for Q4 2025, the Central Bank of Nigeria revealed that all types of corporate lending, including loans to small businesses, private non-financial corporations, and other financial corporations, had higher default rates than secured and unsecured household loans.

"Lenders reported higher default rates for secured, unsecured, and all corporate lending types in Q4 2025," according to the study, indicating ongoing financial strain on borrowers in the context of the current economic climate.

Despite better loan availability during the quarter, the number of defaults increased. Due to shifting economic conditions and lenders' goals for market share, banks reported an increase in credit availability for corporate, secured, and unsecured loans.

The demand for credit also rose, particularly for home loans, mortgages, and overdrafts as well as corporate facilities for capital investment and inventory financing.

However, because many borrowers found it difficult to fulfil their repayment requirements, the growth in lending was accompanied by increased credit risk.

Regarding pricing conditions, the poll revealed that in Q4 2025, spreads on both secured and unsecured consumer loans grew in relation to the Monetary Policy Rate, suggesting that banks were pricing risk more tightly. Lending spreads, on the other hand, widened for medium-sized PNFCs while narrowing for corporate loans to small firms, large PNFCs, and OFCs, indicating varying risk assessment across corporate segments.