…Lenders report low credit default rate in Q1’25
*As credit card lending to households decline
By Elizabeth Adegbesan
The Central Bank of Nigeria, CBN, today said that economic activities expanded for the third consecutive month at 52.3 index points in March 2024.
CBN disclosed this in i5s Purchasing Managers Index, report for March 2024.
According to the apex bank , the industry, services and agriculture sectors indices stood at 51.5, 51.5 and 54.7 index points, respectively, indicating expansion in activities in March.
CBN said: “The composite PMI for March 2025, at 52.3 index points, indicates expansion in economic activities for the third consecutive month.
“A further breakdown of the 36 subsector sreviewed across the Industry, Services and Agriculture Sectors showed that:
“Twenty-four (24) subsectors reported growth in economic activities with Forestry reporting the highest growth during the review month.
“Twelve (12) sub-sectors recorded decline in economic activities with Nonmetallic Mineral Products reporting highest decline.”
Meanwhile, in its Credit Condition Survey Report for the dirst quarter of 2025 (Q1’25), released today, the CBN said lenders reported low default rates even as credit card lending to households declined.
“Lenders reported lower default rates for Secured and Unsecured lending. “For Corporate lending, Small and Medium businesses were stated to have lower default rates while Large Private Non-Financial Corporations, PNFCs , and Other Financial Corporations, OFCs, reportedly had higher default rates.
“The demand for credit was reported to increase for Secured and Corporate lending but stated to have declined for Unsecured lending in Q1’25.
“Lenders reported increased credit availability for Unsecured and Corporate lending in Q1 2025, while Secured lending to households was reported to decrease during the period.
“Respondents reported that the demand for credit was disclosed to increase for Secured and Corporate lending but decline for Unsecured lending. All the demands for lending types reportedly increased in Q1’25, except for demand for secured Mortgage/re-mortgage lending from Households and demand for Unsecured credit card lending from households.
“Inventory finance (22.1) was stated as the major factor that influenced the positive change in demand for Corporate lending.”
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