Credit to Corporate Sector to Increase in 2017 — CBN

• Credit to Corporate Sector to Increase in 2017

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, according to the News Agency of Nigeria.

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.

“Demand for unsecured credit card lending and overdraft personal loan from households decreased in the current quarter but was expected to increase in the next quarter,” the central bank said.

It added that due to lenders’ stance on the tightening in the credit scoring criteria, the proportion of approved households’ total loan applications decreased in the current quarter.

The CBN, however, said that it was expected to decrease further in the next quarter.

On demand for secured lending for house purchase, which increased in the fourth quarter of 2016, the bank said it was expected to increase further in the next quarter.