Zenith Bank, Access Holdings, among others incurred N3.77 trillion in loan losses since 2023.

Despite macroeconomic headwinds, ten listed commercial banks in Nigeria have collectively incurred N3.77 trillion in loan impairment charges between full-year 2023 and Q1 2025, according to data from the Nigerian Exchange (NGX).

The breakdown shows:

2023: N1.34 trillion
2024: N2.13 trillion
Q1 2025: N297.10 billion

These massive loan losses reflect the harsh economic conditions following the naira devaluation, rising inflation, and elevated interest rates, which worsened debt servicing burdens across sectors. Still, banks are showing resilience, with risk management and capital buffers remaining intact in most cases.

Below is a detailed ranking of the top 10 Nigerian banks by total loan impairment charges since 2023:

1. Zenith Bank Plc – N1.03 Trillion in Loan Losses

Zenith Bank recorded the highest loan impairment charges among its peers.

2023: N401 billion
2024: N594 billion
Q1 2025: N36 billion

Total: N1.03 trillion

Despite these losses, Zenith strengthened its risk position, improving its NPL coverage ratio from 171% in 2023 to 223% in 2024. Its cost of risk remained stable at 7.3%, and 96% of its loans were in Stage 1 and Stage 2, reflecting stable portfolio quality.

2. Ecobank (ETI) – N869.5 Billion

Ecobank Transnational Incorporated (ETI) reported the second-highest loan losses.

2023: N288.4 billion
2024: N484.5 billion
Q1 2025: N96.6 billion

Total: N869.5 billion

ETI’s loan impairment charges accounted for over 29% of its net interest income, impacting profitability significantly.

3. First Bank Holdings (First Holdco) – N586.94 Billion

2023: N174.7 billion
2024: N371 billion
Q1 2025: N41.2 billion

Total: N586.94 billion

First Holdco’s asset quality deteriorated, with NPL ratio rising to 10.2% in 2024 from 4.7% the previous year. Coverage ratio dropped to 51%, indicating reduced provisioning strength.

4. United Bank for Africa (UBA) – N423.63 Billion

2023: N154 billion
2024: N258.9 billion
Q1 2025: N11.1 billion

Total: N423.63 billion

UBA maintained a stable credit profile, with cost of risk hovering around 3.18% in 2024, only slightly above 3.09% in 2023.

5. GTCO – N253.04 Billion

Guaranty Trust Holding Company (GTCO) posted:

2023: N102.8 billion
2024: N137 billion
Q1 2025: N13.4 billion

Total: N253.04 billion

Loan losses represented about 13.95% of net interest income, with GTCO maintaining a moderate impairment level.

6. Access Holdings – N247.34 Billion

2023: N84.4 billion
2024: N92.9 billion
Q1 2025: N70 billion

Total: N247.34 billion

Despite the high Q1 2025 figure, Access Holdings maintained low cost of risk, at 1.25% in 2024 and 1.22% in 2023. NPL ratio improved slightly to 2.76%, reflecting effective risk management.

7. Fidelity Bank – N128.88 Billion

2023: N63.4 billion
2024: N51.6 billion
Q1 2025: N10.83 billion

Total: N128.88 billion

Fidelity Bank’s NPL ratio improved from 3.5% in 2023 to 3.0% in 2024, and cost of risk dropped to 1.5%, signaling better loan performance and strong credit control.

8. Stanbic IBTC – N109.59 Billion

2023: N16.8 billion
2024: N88.7 billion
Q1 2025: N4.10 billion

Total: N109.59 billion

Stanbic’s NPL ratio increased to 4.2% in 2024 (up from 2.4%), and cost of risk hit 3.5%, indicating growing stress on its loan book.

9. FCMB – N93.55 Billion

2023: N46.75 billion
2024: N34.12 billion
Q1 2025: N12.69 billion

Total: N93.55 billion

FCMB’s loan losses accounted for 19.12% of its net interest income, indicating a significant erosion in earnings.

10. Wema Bank – N26.6 Billion

2023: N7.53 billion
2024: N17.99 billion
Q1 2025: N1.13 billion

Total: N26.6 billion

Wema’s NPL ratio improved to 3.86% in 2024 from 4.31%, while cost of risk stood at 3.18%, showing enhanced risk mitigation.

Nigerian Banks Face Rising Loan Losses Amid Macroeconomic Strain

While Nigerian banks have faced rising loan impairments due to inflation, FX volatility, and interest rate hikes, many remain financially sound with strong capital buffers. Zenith Bank leads the pack with over N1 trillion in provisions, yet its solid coverage and stable risk metrics underscore its conservative strategy.

These developments highlight the importance of robust risk management in uncertain economic climates. As the banking sector adapts, investors and analysts will closely watch loan quality, NPL ratios, and provisioning trends through 2025.