Nigerian banks booked ₦3.77 trillion in loan losses from 2023 to Q1 2025, driven by naira devaluation and inflation pressures.
Ten listed Nigerian banks have recorded a combined ₦3.77 trillion in loan impairment charges between 2023 and Q1 2025, according to data from the Nigerian Exchange (NGX). The losses — ₦1.34 trillion in 2023, ₦2.13 trillion in 2024, and ₦297.1 billion in early 2025 — were driven by persistent macroeconomic shocks, including naira devaluation, rising interest rates, and inflation.
Zenith Bank topped the list with ₦1.03 trillion in loan losses, followed by Ecobank at ₦869.5 billion and First Holdco at ₦586.9 billion. Despite the spike, some banks demonstrated strong risk management. Fidelity Bank, for instance, reduced its NPL ratio to 3.0% in 2024. Access Holdings maintained a stable cost of risk at 1.25%, while Zenith increased its NPL coverage ratio to 223%.
“Despite the increase in the Monetary Policy Rate, our funding cost remained constant,” said Fidelity CEO Nneka Onyeali-Ikpe.
Overall, the industry remains resilient, though exposed, with banks intensifying credit risk controls amid economic turbulence.