Central Bank promises increased access to credit for Nigerian in 2021

The Central Bank of Nigeria (CBN), says Nigerian households will most likely have improved access to credit beginning from the first quarter of 2021.

According to the Credit Condition Survey Report, released by the Statistics Department of the apex bank, the increase already occurred in the last quarter of 2020.

It stated that changing economic outlook and increased market share objectives which were major factors responsible for the increase in supply of secured credit would most likely continue into the first quarter of 2021.

The report , according to the Blueprint also projected an increase in availability of credit for the corporate sector.

“Lenders reported that the availability of unsecured credit to households increased in Q4 2020, it is expected to increase in Q1 2021. Most lenders cited improving economic outlook and increased market share objective as contributing factors for the increase.

“The overall availability of credit to the corporate sector increased in Q4 2020, and it is expected to increase in Q1 2021, due to “Changing sector specific risk and market share objectives”.

The survey revealed that, though there was a decline in demand for credit for home ownership in the fourth quarter of 2020, it will also increase in 2021.
“Request for secured lending for house purchase decreased in Q4 2020, but lenders expect demand for such lending to increase in Q1 2021.

“The proportion of secured loan applicationps approved decreased as lenders tightened the credit scoring criteria.
“Demand for total unsecured lending from households increased in Q4 2020 and is expected to increase in the Q1 2021. Lenders’ resolve to tighten the credit scoring criterion increased the proportion of approved unsecured loan applications in Q4 of 2020.’’

The quarterly survey is in furtherance of CBN’s mandate to nurture an efficient monetary and financial system toward promoting macroeconomic stability in Nigeria.

The survey covers secured and unsecured lending to households, lending to Public Non-Financial Corporations (PNFCs), small businesses and Other Financial Corporations (OFCs).

The latest edition of the survey presents trends and developments in credit conditions in the fourth of 2020 quarter and its expectation in the first quarter of 2021. The results are usually based on lenders’ own response.