Nigerian Banks Face N3.24trn Loan Loss Provision Impact

Nine banks in Nigeria declared a total loan loss provision of N3.24 trillion for the financial year ending December 31, 2025, significantly affecting shareholder dividend payouts. This provision represents a 40% increase from the N2.33 trillion recorded in 2024.

The Central Bank of Nigeria (CBN) has mandated banks to exit regulatory forbearance loan windows, aligning with prudent loan classification standards. Access Holdings Plc reported a net impairment charge of N523 billion, a 113% increase from N245 billion in 2024.

Zenith Bank recorded an impairment charge of N742.19 billion, up 12.97% from N657 billion in the previous year. Other banks, including UBA and FCMB Group, also reported significant increases in impairment charges.

Despite these challenges, the nine banks posted an estimated profit before tax of N6.35 trillion in 2025, a 3.3% decline from N6.57 trillion in 2024. The rising impairment charges reflect the economic stress and challenges faced by the banking sector in Nigeria.