Nigerian Banks Report 59.6% Increase in Impairment Charges, Totaling N1.58 Trillion

Nigerian banks, including Zenith Bank, GTCo, and First Bank, declared a total of N1.58 trillion in loan impairment charges in the first half of 2025, a 59.6% increase from the previous year. This surge is attributed to the winding down of the CBN forbearance regime, reflecting the challenging macroeconomic environment with inflationary pressures and currency depreciation.

Despite the elevated impairment charges, 10 banks collectively reported a profit before tax of N3.38 trillion, marking a 5.98% decline from the previous year. Zenith Bank notably recorded a significant increase in impairment charges, impacting its interim dividend payout.