In 2025, Nigeria’s Tier-1 banks — FirstHoldco, United Bank for Africa, Guaranty Trust Holdings, Access Holdings, and Zenith Bank — delivered strong earnings, but they also faced rising credit stress across their loan books.
Overall, the banks set aside ₦2.365 trillion for loan impairments.
This increased from ₦1.44 trillion in 2024, marking a 64% rise and the highest level in three years.
In 2023, they booked ₦916.54 billion.
As a result, provisioning pressure intensified sharply.
Meanwhile, lending activity expanded modestly.
The banks grew total loans to ₦43 trillion from ₦39.96 trillion in 2024.
In addition, customer loans generated ₦7.1 trillion in interest income from a total ₦14.5 trillion.
However, credit quality weakened across key segments.
Rising Loan Impairment Pressure
GTCO: Strongest Discipline
GTCO cut impairment charges by 51.4% to ₦66.4 billion.
It grew its loan book to ₦3.13 trillion.
At the same time, it reduced Stage 3 loans to ₦49.4 billion.
Consequently, its capital adequacy ratio rose to 43.82%.
It also earned ₦559 billion from customer loans.
Access Holdings: Scale With Control
Access Holdings recorded ₦287 billion in impairments.
It expanded its loan book to ₦13.34 trillion.
Furthermore, it earned ₦1.9 trillion from customer loans.
Total interest income reached ₦3.55 trillion.
Its capital adequacy ratio improved to 18.12%.
UBA: Rising Credit Pressure
UBA increased impairment charges by 54% to ₦381 billion.
It grew its loan book slightly to ₦7.02 trillion.
However, Stage 3 loans jumped to ₦350.7 billion.
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As a result, its capital adequacy ratio fell to 23.20%.
It earned ₦864.5 billion from loans.
FirstHoldco: Sharp Deterioration
FirstHoldco raised impairment charges to ₦786.8 billion.
It grew its loan book to ₦8.97 trillion.
However, Stage 3 exposures drove most losses.
Consequently, its capital adequacy ratio dropped to ₦10.95%. It earned ₦1.85 trillion from loans.
Zenith Bank: Highest Provisions
Zenith Bank booked ₦843.4 billion in impairments.
It expanded its loan book to ₦10.45 trillion.
In addition, Stage 2 loans rose to ₦3.35 trillion.
Its capital adequacy ratio eased to ₦24.30%. It earned ₦1.82 trillion from customer loans.
Profit Strength Amid Credit Risk
Overall, banks grew earnings in 2025.
However, they also faced stronger credit risk.
Regulatory forbearance removal exposed weaker loans.
Therefore, banks shifted toward safer government securities.
Finally, early 2026 data shows continued pressure.
Impairments rose 36% in Q1.
Still, GTCO remained the only bank to reduce loan losses.
