Since early 2023, Nigerian banks have encountered serious difficulties as a result of bad loans, tallying up a loss of N3.77 trillion.
This amount has begun to raise concerns among industry experts and stakeholders alike.
These losses were unveiled in data obtained from the Nigerian Exchange (NGX), a leading integrated market infrastructure in Africa servicing the continent’s largest economy.
The data revealed that macroeconomic challenges like naira devaluation, high inflation, and rising interest rates have fueled a surge in non-performing loans (NPLs), with seven major banks reporting a 30% increase in bad loans, reaching N1.57 trillion in 2024 alone.
This article dives into the top 5 banks most affected by these bad loans;
1). Zenith Bank
Zenith Bank recorded the highest total loan losses amounting to N1.03 trillion from 2023 to Q1 2025. The bank listed N401 billion loss in 2023, N594 billion loss in 2024, and N36 billion in Q1 2025 from bad loans.
2). Ecobank
Ecobank Transnational Incorporated (ETI) saw loan losses hit N869.5 billion from 2023 to Q1 2025, the second highest among Nigerian banks. The bank listed N288.4 billion in 2023, N484.5 billion in 2024, and N96.6 billion in Q1 2025 losses from bad loans.
3). First Bank
First Bank Holdings (First Holdco) saw loan losses hit N586.94 billion between 2023 and Q1 2025 — the third highest among Nigerian banks. The breakdown of the losses includes N174.7 billion in 2023, N371 billion in 2024, and N41.2 billion in Q1 2025.
4). UBA
United Bank for Africa (UBA) saw loan losses hit N423.63 billion from 2023 to Q1 2025. The breakdown of the losses includes N154 billion in 2023, N258.9 billion in 2024, and N11.1 billion in Q1 2025.
5). GTB
Guaranty Trust Holding Company (GTCO) also reported total loan losses of N253.04 billion from 2023 to Q1 2025. The loses includes; N102.8 billion in 2023, N137 billion in 2024 and N13.4 billion in Q1 2025
Pan-Atlantic Kompass reports that this comes as the Nigerian banking sector has been grappling with a sharp rise in bad loans, which have eroded capital buffers and strained profitability.
Recently, a report by the World Bank noted that the non-performing loan ratio in Nigeria climbed to 5.1% in Q1 2024, just above the prudential benchmark of 5%.
