Banks Recorded High Loan Default Rates in Q4’24 — CBN Survey

A  recent survey by the Central Bank of Nigeria (CBN), has revealed that banks experienced high loan default rate in the fourth quarter of  2024.

According to the report titled: “Credit Condition Survey Report for Q4’24”, “Lenders observed higher default rates for all lending types in the review quarter; Secured, Unsecured and Corporate.”

The report added: “Lenders reported increased credit availability for Corporate lending in Q4’24, while Secured lending to households declined during the period.

“The demand for credit across all lending types increased in Q4’24.

“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 stated that the factors contributing to Corporate Credit demand in Q4’24 were Commercial Real Estate balance sheet restructuring, inventory finance and Capital Investments Merger and Acquisition.

It also noted that the demand for credit increased for all lending types during the period.

It added: “However, demand for Mortgage/re-mortgage from households decreased in Q4’24.”