Government earned N1.2 trillion from Nigerian banks in 2024, more than shareholders 

This marked a 53.34% increase from N3.121 trillion in 2023.

But beneath the surface of booming profits lies a more intriguing story.

The banks’ Value-Added Statements (VAS), a less scrutinized but insightful section of their financials, revealed that the total wealth generated stood at a staggering N8.871 trillion, up 66.3% from N5.335 trillion in the previous year.

The Value-Added Statement (VAS) categorized how the wealth was distributed among key stakeholders: governments, employees, providers of capital, shareholders, and retained earnings for future use.

The Value-Added Statements reveal that the government emerged as the biggest external beneficiary, eclipsing shareholders by a wide margin.

Below is a breakdown of how each bank disbursed its generated value: 

In 2024, Zenith Bank stood out as the most profitable Nigerian bank, posting N1.032 trillion in profit after tax, the highest among its peers.

The bank also generated a substantial N1.583 trillion in value added during the year.

While this represents a notable improvement, the government still walked away with a significantly larger share of the bank’s wealth.

GTCO recorded a profit after tax of N1.018 trillion in 2024, the second highest among Nigerian banks.

Also, its value added stood at N1.410 trillion.

This made the government one of the biggest external beneficiaries of the bank’s wealth in 2024 and further aligns with the broader trend.

Access Holdings led all banks with the highest value-added of N1.622 trillion in 2024, a 48% increase from the previous year, and with a profit after tax of N642.216 billion.

The bank paid N224.802 billion to the government (14% of value added) and N261 billion to providers of finance (16%).

Shareholders received N125.299 billion in dividends, about 68% higher than in 2023, but still significantly less than what the government received, reinforcing the broader trend of the state benefiting more than equity investors from bank performance in 2024.

Shareholders received N125.299 billion in dividends, about 68% higher than in 2023, but still significantly less than what the government received, reinforcing the broader trend of the state benefiting more than equity investors from bank performance in 2024.

First Holdco generated a solid N1.593 trillion in value added, nearly double its 2023 figure, and posted a profit after tax of N663.490 billion.

The government received N132.977 billion, up 179% year-on-year, while employees got N308.5 billion (about 19%).

However, shareholders received just N25.127 billion, which is about five times less than the amount paid to the government, highlighting a significant disparity in value distribution.

Fidelity Bank posted a profit after tax of N278.106 billion, representing a 179% increase from 2023, and N508.743 billion in value added.

The government emerged as the top external beneficiary, receiving N95.454 billion (18.76% of value added), a massive surge from N4.170 billion the previous year.

In comparison, shareholders got N89.965 billion, a significant 231% increase year-on-year, but still slightly less than what went to the government.

Stanbic IBTC value added stood at N408.586 billion in 2024. From this, the government received N78.485 billion, marking a 143% increase from the previous year.

Employees were the highest beneficiaries, receiving N86.681 billion (21% of value added), which was also higher than the government’s share.

Shareholders, however, received the least, N64.758 billion, suggesting they bore the brunt of the distribution.

FCMB reported a 21% decline in profit after tax to N73.337 billion but created N205.074 billion in value added a 24% increase from 2023.

The government received N38.558 billion, accounting for 18.8% of the value added, while shareholders received N21.783 billion.

Although this represents a 120% increase from 2023, it still falls significantly below what was paid to the government, reinforcing the trend where public coffers benefited more than equity investors.

UBA, a leading Tier-1 bank, delivered a strong profit after tax of N766.568 billion in 2024. Its value added stood at N1.384 trillion, marking a 23% increase from 2023.

About 75% (N1.032 trillion) of this wealth was retained for asset replacement, business expansion, and non-controlling interests.

According to the financial statements, shareholders received N170.997 billion, which is significantly higher than the N37.158 billion paid to the government, making UBA one of the few banks where shareholders gained more than the public purse.

Wema Bank saw a 139.74% increase in profit, reaching N86.280 billion in 2024. Its value added surged to N156.718 billion, up 105% from 2023.

The bank paid N16.235 billion in taxes to the government, a 111.5% increase, representing 10.36% of its value added.

However, the financial statements show that shareholders are set to receive N21.430 billion, which is higher than the amount paid to the government, positioning Wema Bank among the few where shareholders emerged more favored than the public treasury.

Overall, while Nigerian banks paid out a record N951 billion to shareholders in 2024, an impressive 87% increase from the previous year, the government still emerged as the biggest beneficiary, receiving a total of N1.166 trillion in taxes, up 111.39% year-on-year.

This means the government earned over N200 billion more than shareholders from the banking sector’s 2024 performance, highlighting a growing shift in value distribution toward public coffers.