Nigerian Banks Face Regulatory Challenges by 2025

Nigerian banks are confronting new regulatory challenges as the Central Bank of Nigeria (CBN) implements a directive requiring banks to align fully with prudent loan classification standards by 2025. This regulatory haircut aims to enhance asset quality and restore transparency in the banking system.

The five largest banks in Nigeria—Zenith Bank, Access Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), and First Bank—are particularly affected, with significant increases in impairment charges. Zenith Bank reported an impairment charge of N742.19 billion for the financial year ending December 31, 2025, a 12.97% increase from the previous year.

Access Bank declared a net impairment charge of N523.55 billion, up 113% from the prior year. UBA's impairment charge rose by 53% to N331.07 billion.

Despite these challenges, Zenith Bank's gross earnings grew by 6% to N4.19 trillion, while Access Bank's profit tax increased by 16.2% to N1.01 trillion. CBN Governor Olayemi Cardoso believes the new risk-based framework will stabilize the financial system.