Nigerian Banks' Oil and Gas Exposure Drops to N12.2tn

In 2025, the exposure of ten Nigerian banks to the oil and gas sector decreased by 22.2% to N12.2 trillion, down from N15.7 trillion in 2024. This decline is attributed to a 13.4% reduction in non-performing loans (NPLs) and substantial loan provisions made during the review period.

The banks involved include FBN Holdings Plc, Access Holdings Plc, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) Plc, Zenith Bank Plc, Fidelity Bank Plc, Wema Bank Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Stanbic IBTC Holdings Plc. Zenith Bank had the highest exposure at N2.59 trillion, a 36.8% drop from N4.11 trillion in 2024, while Fidelity Bank reported N1.91 trillion, a 4.3% decline.

The overall gross loan advances to the oil and gas sector increased to N56.05 trillion, contributing 21.8% to the banks' gross loans. The Central Bank of Nigeria (CBN) has been guiding banks to manage their exposures prudently amid global oil market volatility.