The Central Bank of Nigeria (CBN) has disclosed that access to credit improved across major lending segments in the fourth quarter of 2025, even as financial institutions recorded an increase in loan defaults by households and businesses.

The disclosure was contained in the apex bank’s Q4 2025 Credit Conditions Survey, which showed that while lending conditions delivered mixed results, banks and other lenders were gradually widening credit availability amid growing concerns over repayment risks.

According to the CBN, lenders adopted a cautious expansion strategy, balancing the need to support economic activity with the rising threat of non-performing loans. The report indicated that although more borrowers were able to access funding during the quarter, financial institutions faced heightened exposure to defaults from both retail and corporate customers.

The survey further revealed that credit developments during the period reflected a combination of emerging opportunities and mounting challenges for both borrowers and lenders, underscoring the fragile and evolving nature of Nigeria’s financial system.

The CBN said the trends highlight the complexity of the country’s credit environment, where efforts to stimulate lending and economic growth continue to be weighed against the realities of inflationary pressures, income constraints and weakening repayment capacity.