Request for housing loan declines – CBN

The Central Bank of Nigeria (CBN) said in its newly released credit condition survey report that demand for lending for house purchase decreased in the first quarter of the year, 2018.

The report, however, predicts that this is expected to increase in the next quarter of the year.

The report stated: “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”, it stated.

The report said secured loan performance, as measured by default rates, worsened in the first quarter of the year but is expected to improve in the second quarter.

“Similarly, loss given default worsened in the current quarter and it is expected to improve in the next quarter. The overall availability of credit to the corporate sector increased in the first quarter 2018 and was expected to increase in the second quarter 2018. This was driven by brighter economic outlook, changing sector-pecific risks, changing appetite for risk, tight wholesale funding conditions and market share objectives”, it stated.

The report explained that lenders said the prevailing commercial property prices negatively influenced credit availability of the commercial real estate sector in the current quarter.