BAD LOANS: Since 2023, Nigerian listed banks have lost N3.77 trillion in loans; view the biggest losers.
In 2023, the charges totaled N1.34 trillion; in 2024, they shot up to N2.13 trillion; and in the first three months of 2025, they were N297.10 billion.
Nigeria’s macroeconomic volatility—specifically, the sharp devaluation of the naira in mid-2023, skyrocketing inflation, and rising interest rates—is largely to blame for the surge in bad loans. These factors reduced household incomes, squeezed corporate margins, and increased the cost of debt servicing.
Despite the size of this, the banks seem to be weathering the storm, as seen by some resilience in key risk indices. Furthermore, the Banks themselves are expressing faith in their capacity to weather the storm.
In its 2024 earnings report, Fidelity Bank, for example, noted improved internal performance while acknowledging the macroeconomic pressures. Nneka Onyeali-Ikpe, the CEO, stated:
The environment of high yield caused the Net Interest Margin (NIM) to increase from 8.1% to 12.0%. Our funding cost, at 5.2%, was largely unchanged in spite of the Monetary Policy Rate’s rise. The effectiveness of our risk management procedures is demonstrated by the improvement in our NPL ratio from 3.5% to 3.0% and the lowered cost of risk from 2.6% to 1.5%.
10 – Wema Bank
Wema Bank recorded total loan losses of N26.6 billion from 2023 to Q1 2025, representing 8.19% of its net interest income of N325.37 billion over the same period.
- N7.53 billion in 2023
- N17.99 billion in 2024
- N1.13 billion in Q1 2025
The bank’s cost of risk was 3.18% in 2024, and its non-performing loan (NPL) ratio improved to 3.86%, down from 4.31% in 2023.
9 – FCMB
First City Monument Bank (FCMB) recorded total loan losses of N93.55 billion from 2023 to Q1 2025, representing 19.12% of its total net interest income of N489.39 billion over the same period.
- N46.75 billion in 2023
- N34.12 billion in 2024
- N12.69 billion in Q1 2025
8 – Stanbic IBTC
Stanbic IBTC recorded total loan impairment charges of N109.59 billion between 2023 and Q1 2025, equivalent to 14.9% of its net interest income of N735.53 billion.
- N16.8 billion in 2023
- N88.7 billion in 2024
- N4.10 billion in Q1 2025
Stanbic’s cost of risk stood at 3.5% in 2024. Meanwhile, its non-performing loan (NPL) ratio also rose to 4.2%, up from 2.4% in 2023.
7 – Fidelity Bank
Fidelity Bank recorded total loan losses of N128.88 billion between 2023 and Q1 2025, representing 11.47% of its net interest income of N1.098 trillion.
- N63.4 billion in 2023
- N51.6 billion in 2024
- N10.83 billion in Q1 2025
Fidelity recorded a low and improving cost of risk — 1.5% in 2024 compared to 2.6% in 2023 — suggesting that the proportion of its loan book being written off remained modest and was trending in the right direction.
6 – Access Holdings
Access Holdings reported total loan losses of N247.34 billion between 2023 and Q1 2025.
- N84.4 billion in 2023
- N92.9 billion in 2024
- N70 billion in Q1 2025
This represents 13.75% of its N1.80 trillion net interest income for 2023 FY, 2024 FY, and Q1 2025.
Access has a low and stable cost of risk — 1.25% in 2024 and 1.22% in 2023. This suggests that Access Bank’s loan portfolio remained healthy, and it did not need to make large provisions.
5 – GTCO
Guaranty Trust Holding Company (GTCO) reported total loan losses of N253.04 billion from 2023 to Q1 2025, a moderate figure compared to its peers.
- N102.8 billion in 2023
- N137 billion in 2024
- N13.4 billion in Q1 2025
This represents about 13.95% of its N1.81 trillion net interest income for 2023 FY, 2024 FY, and Q1 2025.
4 – UBA
United Bank for Africa (UBA) saw loan losses hit N423.63 billion from 2023 to Q1 2025.
- N154 billion in 2023
- N258.9 billion in 2024
- N11.1 billion in Q1 2025
However, the cost of risk how much of its total loan book was written off remained low and steady: 3.18% in 2024 vs. 3.09% in 2023. This suggests that loan quality remained largely stable, and UBA’s credit risk has not significantly worsened.
3 – First Holdco
First Bank Holdings (First Holdco) saw loan losses hit N586.94 billion between 2023 and Q1 2025 — the third highest among Nigerian banks.
- N174.7 billion in 2023
- N371 billion in 2024
- N41.2 billion in Q1 2025
These impairments represent roughly 25% of its N2.3 trillion net interest income, indicating a sizable impact on profitability.
Asset quality weakened during the period. The NPL ratio more than doubled to 10.2% in 2024 from 4.7% in 2023, while the NPL coverage ratio declined sharply to 51%, down from 92%.
2 – ETI
Ecobank Transnational Incorporated (ETI) saw loan losses hit N869.5 billion from 2023 to Q1 2025, the second highest among Nigerian banks.
- N288.4 billion in 2023
- N484.5 billion in 2024
- N96.6 billion in Q1 2025
These impairments represent over 29% of its N2.9 trillion net interest income, signaling a significant drag on earnings.
1 – Zenith Bank
Zenith Bank recorded the highest total loan losses amounting to N1.03 trillion from 2023 to Q1 2025:
- N401 billion in 2023
- N594 billion in 2024
- N36 billion in Q1 2025
However, the bank strengthened its buffers. The NPL coverage ratio rose to 223% in 2024, up from 171% in 2023, indicating it set aside significantly more provisions to absorb potential credit losses.
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