Why Tier-1 Banks Profits Fell 18% Despite Core Boom
Nigeria's Tier-1 banks (FUGAZ: Access Holdings, FirstHoldco, GTCO, UBA, Zenith) reported combined pre-tax profit of N4.15tn for FY2025, down 18% from N5.06tn in 2024, due to 53% FX income drop, 59% impairment surge to N2.29tn, and 29% operating expense rise to N5.53tn. Core strength shines with 18% interest income growth to N14.49tn (loans N7.2tn, securities N6.21tn), shifting asset allocation toward securities (N48.88tn vs loans N43.01tn), total assets up 10% to N160.97tn on N114.27tn deposits.
CBN Reforms: Shielding Nigeria from Global Shocks?
CBN reforms under Olayemi Cardoso, including FX unification, deficit financing halt, and banking recapitalization, have bolstered Nigeria's economy against Middle East crisis shocks. Reserves rose, remittances hit $600M/month, inflation eased, and World Bank upgraded 2026 growth to 4.4%. IMF notes lower risks for oil exporters like Nigeria amid global headwinds.
Nigeria Private Credit Hits N94.6tn Record as Gov Borrowing Soars
Central Bank of Nigeria data shows private sector credit surging to a record N94.61 trillion in February 2026 from N93.74 trillion in January, while net claims on government climbed to N39.36 trillion. This synchronized growth contrasts 2025's tight liquidity and range-bound trends, with CPS expanding N18.35 trillion YoY and government credit up N12.25 trillion, signaling broad balance sheet expansion.