Naira Depreciation Boosts Earnings for Nigerian Banks in 2026

Fitch Ratings published a report on September 14, 2026, titled “African Banking Groups’ Cross-Border Expansion to Continue,” which analyzed 14 African banking groups, including four Nigerian lenders: Access Bank Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, and First HoldCo Plc. The report indicated that the naira's sharp depreciation between 2023 and 2024 led to a significant increase in the contribution of foreign subsidiaries to the earnings and asset base of these banks.

UBA's foreign subsidiaries accounted for 77% of its net income in 2025, up from 44% in 2024, while Access Bank's foreign operations contributed 48% of its net income in 2025, rising from 30% in 2021. Access Bank's acquisition of Mauritius-based AfrAsia Bank Limited in July 2025 was noted as a key expansion move.

However, Access Bank breached a regulatory limit on investments in foreign subsidiaries, affecting its dividend payments. Zenith Bank's acquisition of Kenya’s Paramount Bank in April 2026 was also highlighted as part of a broader strategy for expansion into East Africa.