Nigeria's NPLs Rise to N3.27 Trillion Amid Forbearance Withdrawal

Non-performing loans (NPLs) in Nigeria reached N3.27 trillion in 2025, marking a 15.6% increase from N2.83 trillion in 2024. This rise follows the Central Bank of Nigeria's (CBN) withdrawal of regulatory forbearance that allowed banks to restructure loans without classifying them as non-performing.

First Holdco (NGX: FIRSTHOLDCO) reported the highest NPL value at N1.49 trillion, a 21.1% increase from N1.23 trillion in 2024, with an NPL ratio of 12% against a regulatory requirement of 5%. Other banks also reported increases in NPLs, including UBA (NGX: UBA) with N572.19 billion (36.5% increase), Access Bank (NGX: ACCESSCORP) with N468 billion (27.5% increase), and Zenith Bank (NGX: ZENITHBANK) with N420.43 billion (decline of 18.6%).

The overall banking sector's NPL ratio is estimated to climb to 7%, exceeding the prudent ceiling of 5%. The increase in NPLs is attributed to the devaluation of the naira and higher interest rates affecting loan performance.