The Central Bank of Nigeria (CBN) has disclosed that banks experienced higher default rates on credit card and overdrafts/personal lending to households in the first quarter of 2018.
The Credit Conditions Survey Report of the CBN that was released on Thursday however predicted that there will be improvement on credit card and overdrafts/personal lending to households default rates in the next quarter.
According to the report, “Households demand for lending for house purchase decreased in Q1 2018, but was expected to increase in the next quarter. Of the total demand, households demand for prime lending and other lending increased, and these demands were expected to increase in the next quarter.”
“Households demand for consumer loans rose in the current quarter and is expected to rise in the next quarter. Demand for mortgage/remortgaging from households rose in Q1 2018 and is expected to rise in Q2 2018.
“Secured loan performance, as measured by default rates, worsened in Q1 2018 but is expected to improve in Q2 2018. Similarly, loss given default worsened in the current quarter and it is expected to improve in the next quarter.”
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