Nigerian Banks' Profits Soar 12-Fold Since 2005 Reform

Since the 2005 banking recapitalisation led by former Central Bank of Nigeria Governor Chukwuma Soludo, the profits of Nigeria's surviving banks have surged 12 times, reaching N5 trillion by the end of 2025, up from N43 billion in 2005. The recapitalisation raised the minimum capital requirement for banks to N25 billion and reduced the number of banks from 89 to 25 through mergers and acquisitions.

Currently, about 13 banks remain operational, including Access Bank, Ecobank Nigeria, Fidelity Bank, First Bank, FCMB, Guaranty Trust Bank, Stanbic IBTC, Standard Chartered Bank Nigeria, Sterling Bank, United Bank for Africa, Wema Bank, Citibank Nigeria, and Zenith Bank. Notable profit increases include GTB's rise from N5.36 billion to N866 billion and Zenith's from N7.2 billion to N1.04 trillion.

Analysts attribute this growth to expanded balance sheets, improved regulations, and increased customer trust, although challenges such as fraud and poor customer service persist.