Non-performing loans (NPLs) in seven Nigerian banks sector have surpassed N1.57 trillion, even as lenders report an overall improvement in loan quality.
Data compiled from the 2024 financial statements of the banks—Access Holdings, GTCO Holdings, UBA, Zenith Bank, Wema Bank, Fidelity Bank, and Stanbic IBTC—show that the aggregate NPL ratio declined to 3.93 percent, down from 4.18 percent in 2023.
In absolute terms, however, bad loans are on the rise. The total value of NPLs reported by these banks increased by 30 percent, from N1.21 trillion in 2023. This is against the backdrop of a 39 percent surge in total customer loans, which expanded from N28.9 trillion to N40.1 trillion, driven by naira devaluation and the pursuit of higher interest income in a high-rate environment.