The Central Bank of Nigeria has said the overall availability of credit to the corporate sector is expected to increase further in the first quarter of 2017. The CBN said in the Credit Conditions Survey Report, posted on its website, that the credit to the sector increased in the fourth quarter of 2016.
The bank attributed the increase in credit availability to some major factors, which included changing in sector specific risk and brighter economic outlook. It said others include improved liquidity conditions and tight wholesale funding conditions.
The CBN said the demand for secured lending for house purchase increased in fourth quarter of 2016 and was expected to increase further in the next quarter.
“In spite of lenders’ stance in tightening the credit scoring criteria in the current quarter, the proportion of loan applications approved in the fourth quarter of 2016 increased.