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Nigeria’s Five Largest Banks Surpass N161.4 Trillion in Total Assets

Nigeria’s five largest banks finished 2025 with a combined asset base of about N161.4 trillion, showcasing the transformation driven by the Central Bank of Nigeria’s (CBN) recapitalisation programme. Access Holdings Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, First HoldCo Plc, and Guaranty Trust Holding Company (GTCO) Plc, collectively known as the FUGAZ group, were the main contributors to this growth. Their total assets increased by 12.6% from N143.1 trillion in 2024.

The increase in assets tells the story of a banking sector that raised fresh capital, expanded balance sheets, and strengthened buffers, even though profits were under pressure from higher loan loss provisions and the end of regulatory forbearance.

How the CBN Recapitalisation Policy Shaped the Banks

The CBN launched a major recapitalisation programme in March 2024, setting higher capital requirements for banks and giving them until March 2026 to comply. To meet these requirements, banks had three options: raise fresh equity, pursue mergers and acquisitions, or accept a downgrade.

As a result, 33 banks raised a combined N4.65 trillion in new capital. For the top five banks, this meant issuing public offers, rights issues, and international capital offerings. For example:

UBA raised N388.92 billion from a two-part equity capital programme.
GTCO raised N500 billion through an international offering and private placement.

This capital injection strengthened the banks’ balance sheets, with shareholders’ funds increasing by 21%, reaching N20.22 trillion in 2025, up from N16.72 trillion in 2024. The proportion of equity in their total assets rose from 11.68% to 12.5%, signaling stronger financial buffers.

Bank-by-Bank Breakdown of Asset Growth

Here’s a breakdown of how each of the five banks performed:

Access Holdings:
- Assets grew from N41.4 trillion to N51.5 trillion, a N10 trillion increase.
- Shareholders’ funds increased by 15.05%, reaching N4.33 trillion.
UBA:
- Assets rose from N30.32 trillion to N33.7 trillion.
- Shareholders’ funds grew by 24.4%, reaching N4.25 trillion.
Zenith Bank:
- Assets increased from N29.96 trillion to N31.4 trillion.
- Shareholders’ funds rose by 22.2%, reaching N4.9 trillion.
First HoldCo:
- Assets grew to N26.52 trillion.
- Shareholders’ funds increased by 18.1%, reaching N3.3 trillion.
GTCO:
- Shareholders’ funds grew by 26%, reaching N3.4 trillion.

Earnings Growth: A More Nuanced Picture

While assets grew, profits didn’t follow the same pattern. In 2025, the combined gross earnings of the five banks reached N18.2 trillion, a 7.69% increase from 2024. However, profit growth was not uniform across all banks.

Access Holdings grew its profit to N743 billion.
Zenith Bank maintained a steady profit of N1.04 trillion.
First HoldCo, UBA, and GTCO all saw declines in after-tax profit.

The main reason for the profit squeeze was the unwinding of regulatory forbearance, which led to higher loan loss provisions. For example, First HoldCo’s provisions jumped from N371 billion to N710 billion, while Access Holdings saw impairment charges rise by 209% to N287.3 billion.

Interest Income and Digital Channels Drive Revenue

Despite the profit pressures, the banks’ revenue engines stayed strong. Interest income grew significantly, benefiting from Nigeria’s high lending rates. For example:

Zenith Bank nearly doubled its interest income to N2.72 trillion.
GTCO saw a significant increase to N1.32 trillion.

Non-interest income also grew, with e-banking revenues rising to N685.5 billion from N628.4 billion. This reflects the increasing adoption of digital banking among customers, with more people shifting to mobile and online banking.

What Analysts Say About the Outlook

Analysts expect 2026 to be another positive year for the banks, supported by high fixed-income yields, growing digital transaction volumes, and ongoing balance sheet optimisation. However, they also highlighted challenges, including inflation and the possibility of lower foreign exchange revaluation gains as the naira stabilises.

Fitch Ratings projects that Nigerian banks will accelerate loan growth above 20% in 2026, after a slowdown in 2025 due to tighter monetary conditions. The recapitalisation programme has strengthened the banks’ balance sheets, making them more capable of extending credit.

CBN Governor Olayemi Cardoso has also highlighted that the recapitalisation exercise has prepared the banking sector to support Nigeria’s goal of achieving a one trillion-dollar GDP.

Market Sentiment

Investor confidence in the banking sector remains high, as evidenced by the positive performance of the NGX Banking Index, which rose by 0.36% in May 2026. The broader All-Share Index reached 243,158.97 points, with year-to-date returns of 56.26%, reflecting strong sentiment in the Nigerian stock market.

FAQs

Which Nigerian banks make up the five tier-one lenders?
The five tier-one banks are Access Holdings, UBA, Zenith Bank, First HoldCo, and GTCO. They are collectively referred to as the FUGAZ group.
What does N161.4 trillion in combined assets mean for Nigeria’s economy?
This represents a significant portion of Nigeria’s economic output, enabling more lending for businesses, infrastructure, and households, thereby supporting broader economic growth.
Why did some banks report lower profits in 2025 despite asset growth?
Lower profits were mainly due to the unwinding of regulatory forbearance, which led to higher loan loss provisions. This was a one-time adjustment rather than an indication of deteriorating loan quality.