Economy
91% of corporate loans performing, says CBN
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About 91 per cent of loans obtained from banks by companies are performing, the Central Bank of Nigeria (CBN) has said.
In its latest credit conditions survey released at the weekend, the CBN indicated that about nine per cent of corporate loans are non-performing, four notches above the apex bank’s regulatory guidance of five per cent.
According to the report, corporate loan default stood at nine per cent in fourth quarter 2024. It stood at 6.2 per cent in third quarter, 2.8 per cent in second quarter and 4.5 per cent in the first quarter of last year.
The CBN outlined the factors contributing to corporate credit demand to include commercial real estate, balance sheet restructuring, inventory finance, capital investments, merger and acquisition.
The apex bank said there were increased credit availability for corporate borrowers, while secured lending to households dropped.
“The demand for credit across all lending types increased in fourth quarter of last year. The factors influencing the increase for secured and unsecured household loans were consumer loans from households and credit cards lending from households respectively while inventory finance was the major factor that influenced the change in demand for corporate lending,” CBN stated.
The apex bank also noted that the demand for credit increased for all lending types during the period.
However, demand for mortgage and re-mortgage from households decreased.
“The demand for credit across all lending types increased in fourth quarter of last year when compared to the previous quarter. The overall spreads on secured and unsecured lending rates to households relative to Monetary Policy Rate (MPR) widened.
“For corporate lending, all lending type spreads on loan relative to MPR also widened, except Other Financial Corporations (OFCs) which narrowed in the current quarter,” the report stated.
The Credit Conditions Survey (CCS) reports on secured and unsecured lending to Households, Private Non-Financial Corporations (PNFCs), Small Businesses and Other Financial Corporations (OFCs). The survey was based on lenders responses, to questions from the statistics department of the CBN.
To determine the aggregate results, each lender was assigned a score based on lender’s response. Lenders who report that credit conditions have changed “a lot” are assigned twice the score of those who report that conditions have changed “a little”. These scores were then weighted by lenders credit market shares.
The results were analyzed by calculating net percentage balances, such as the difference between the weighted balances of lenders reporting that demand was higher versus those reporting that demand was lower. The net percentage balances are scaled within the range plus or minus 100.
The United Kingdom has introduced new restrictions on a chemical commonly used in some gel nail polishes amid concerns over its potential impact on fertility and reproductive health.
The restriction targets trimethylbenzoyl diphenylphosphine oxide, commonly known as TPO, a photoinitiator that enables gel polish to harden when exposed to UV light and helps improve its durability and colour retention.
Under the new rules, which took effect on Saturday across England, Wales and Scotland, manufacturers are no longer permitted to place new TPO-containing cosmetic products on the UK market.
However, beauty salons have been given until February 14, 2027, to stop using existing products containing the chemical, meaning customers could still encounter TPO-based gel polishes during the transition period.
The move follows concerns arising from animal studies that have linked TPO exposure to possible reproductive and fertility problems. The European Union introduced a similar prohibition in September 2025.
The restrictions have nevertheless attracted debate within the cosmetics industry. The Cosmetic, Toiletry and Perfumery Association has maintained that the concentration of TPO used in nail products is significantly lower than levels associated with harmful effects.
The UK decision is therefore expected to intensify discussions within the beauty industry over whether precautionary restrictions should take priority where potential reproductive risks remain under investigation.
Investors in the Nigerian stock market recorded a cumulative loss of N5.45 trillion as the equities market extended its bearish run to an eighth consecutive session at the close of trading session on Thursday night, August 20..
Equities listed on the Nigerian Exchange Limited, NGX, have continued to experience significant declines since Tuesday, August 11, 2026 but last week, investors on the NGX lost N3.8 trillion in four consecutive bearish sessions.
From Monday to Thursday this week, stocks on the NGX have lost a total of N1.65 trillion meaning that the combined losses recorded over the last eight trading sessions amounted to N5.45 trillion, wiping out previous gains in the market.
The market extended its bearish run on Thursday as investors lost N440 billion, driven by continued profit-taking in large- and mid-cap stocks.
Market capitalisation declined by 0.30 per cent, or N440 billion, from N155.417 trillion at the opening of trading to N154.977 trillion at the close.
The Naira yesterday depreciated to N1,405 per dollar in the parallel market from N1,400 per dollar on Wednesday.
But the naira appreciated to N1,347.5 per dollar in the Nigerian Foreign Exchange Market, NFEM.
Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira fell to N1,347.5 per dollar from N1,351 per dollar on Wednesday, indicating N3.5 appreciation for the naira.
Consequently, the margin between the parallel and official markets widened to N57.5 per dollar from N49 per dollar on Wednesday.
The interbank turnover at NFEM rose by 0.22 percent to N371.8 million yesterday from N370.98 million the previous day.
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