Nigeria’s Loan Default Rate Rises Amidst Shifting Economic Conditions

The Central Bank of Nigeria (CBN) reveals that secured loans faced a rise in defaults during the third quarter of 2025, according to its latest Credit Conditions Survey. This report indicates an increase in loan defaults as customers struggled to repay their collateralized loans, such as those tied to houses or vehicles. In contrast, unsecured loans saw a decline in defaults in the same period, allowing more borrowers without collateral to meet their repayment obligations.