The Central Bank of Nigeria (CBN) on Monday revealed that deposit money banks (DMBs) experienced a significant rise in loan defaults from Small and Medium Enterprises (SMEs), Micro, Small, and Medium Enterprises (MSMEs) among others in the fourth quarter (Q4) of 2024.
This is according to credit conditions survey report for Q4 2025 released by the Statistics and Economic Policy Directorate department of the apex bank.
The survey which was conducted in November 2024 and based on lenders’ responses, highlighted that defaults rose across all loan categories, including secured, unsecured, and corporate loans.
“Lenders observed higher default rates for all lending types in the review quarter. Secured, Unsecured and Corporate (small businesses, medium PNFCs, large PNFCs and OFCs)”, the survey report said.
The apex bank’s survey also revealed that the overall spreads on Secured and Unsecured lending rates to households relative to the Monetary Policy Rate (MPR) widened in the review quarter.
