CBN survey indicates improving credit growth   

03 October 2018 : The CBN’s credit conditions survey for Q3’18 indicated an increase in secured credit to both household and corporates, driven by an improving economic outlook and an overall increased risk appetite of lenders. Lenders also reported that more corporate loan applications were approved in the quarter, with narrower spreads on MPR, even though the same approval criteria were maintained – perhaps testament to the overall improvement in corporate performance. 

However, they reported shying away from the Commercial Real Estate market as the conditions in that sector remains unfavorable. According to the survey, lenders expect credit supply to further improve in Q4’18, albeit at wider spreads on MPR as they anticipate a mild uptick in yield within the quarter. Analysts expect lenders improved risk appetite, coupled with recent CBN initiatives such as the Real Sector Support Facility (RSSF), to further support credit growth. 

Reporting for EasyKobo on Wednesday , 03 October 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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