First Holdco, Others’ NPLs Soar to  N3.27tn on Withdrawal of Regulatory Forbearance

.FBNH reports N1.49tn non-performing loans

. 13.4% NPL above 5% regulatory requirement

.Banks customer loans expand to N54.5tn

Kayode Tokede  

On the back of the withdrawal of regulatory forbearance by the Central Bank of Nigeria (CBN), the Non-performing loans (NPLs) of First Holdings Plc, six other banks operating in the country closed 2025 at N3.27 trillion.

This represents a significant increase of 15.6 per cent when compared to the N2.83 trillion reported in 2024.

The growth in  NPL by value is against the backdrop of a surge in gross customer loans, which expanded to N54.5 trillion, in 2025, representing an increase of nearly 8.8 per cent from N50.1 trillion in 2024. The increase in gross customer loans was driven by naira devaluation and the pursuit of higher interest income in a high-rate environment.

Nigeria’s banking sector saw a fresh rise in bad loans in 2025 after the Central  Bank of Nigeria (CBN) withdrew the regulatory forbearance that allowed banks to restructure pandemic-hit facilities without classifying them as non-performing.

Of the seven banks, THISDAY findings revealed that First Holdco declared the highest NPL by value in 2025, reporting N1.49 trillion, about 21.1 per cent increase from N1.23 trillion in 2024.  

The Group also revealed that its Non-Performing Loans (NPL) Ratio closed 2025 at 12 per cent, from 10.20 per cent reported in 2024. Currently at 13.4 per cent,  the ratio above the regulatory requirement of 5 per cent. 

First Holdco exposure in the Oil & Gas upstream, Oil & Gas services  and Oil & Gas downstream have contributed to significant increase in NPL. 

According to the audited result and accounts for 2025, First Holdco declared an estimated N12.42 trillion gross loans & advances to customers, about 2.9 per cent increase over N12.07 trillion reported in 2024.

Following First Holdco is UBA with N572.188 billion NPL by value, about 36.5 per cent increase over N418.09 billion reported in 2024. The Pan-African financial institution closed in 2025 with an NPL ratio of 7.67 per cent from  5.58 per cent in 2024.

“The NPL ratio increased to 7.67 per cent from 5.58 per cent, however, the  coverage ratio improved to 123.60 per cent from 80.85 per cent, reflecting disciplined and proactive credit risk management,” stated UBA’s management in a presentation to analysts.  

Meanwhile,  Access Holdings saw its NPL ratio move from 2.76 per cent in 2024 to 2.82 per cent in 2025 to drive its NPL value at N468 billion in 2025, about 27.5 per cent increase over N367 billion reported in 2024. 

“NPLs remained broadly stable, but higher impairments and cost of risk reflect a more conservative provisioning stance in FY 2025,” the lender stated in a statement.  

Access Holdings, the highest lender in Nigeria’s banking industry granted an estimated N16.24 trillion gross loans in 2025 from N13.07 billion in 2024. 

In the period under review, Zenith Bank posted N420.43 billion NPL by value, a decline of 18.6 per cent from N516.71billion in 2024  influenced by  3.80 per cent NPL ratio decline in 2025 from  4.70 per cent in 2024. 

“NPL ratio improved to  3.8per cent in FY 2025, reflecting enhanced asset quality and strengthening balance  sheet resilience,” management of Zenith Bank explained. 

However, GTCO Holdings’ NPLs by value  surged to N150.04 billion in 2025, from N144.9 billion despite a 4.79 per cent NPL ratio in 2025 from 5.20 per cent in 2024. 

In addition, Wema Bank in 2025 announced NPL by value of N88.96 billion as against N47.86 billion in 2024, attributable to  NPL value that went up from 3.86 per cent in  2025 from 4..90 per cent 2024, while Stanbic IBTC Holdings moved to N83.64 billion in 2025, 19 per  cent increase  from N103.5 billion in 2024.  

“The Bank’s NPL ratio increased modestly during the period, primarily reflecting our expanded loan book and some obligor-specific stress within a few exposures rather than any broad-based deterioration in asset quality. Overall credit quality remains resilient, supported by strong risk management practices, and active portfolio monitoring, ” explained Wema Bank.

Data from the CBN’s macro-economic outlook showed that the banking industry’s NPL ratio climbed to an estimated seven per cent, pushing the sector above the prudential ceiling of five per cent.

The regulator explained that the increase followed the crystallisation of previously restructured loans that could no longer qualify for special consideration once the relief window expired.

It said, “The Non-performing Loans ratio stood at an estimated seven per cent   relative to the prudential limit of five per cent. The level of NPLs reflected the withdrawal of the regulatory forbearance granted to banks during the COVID-19 pandemic.” 

The CBN had cautioned that the jump in NPLs exposes the sector to rising credit risk, especially as borrowers contend with higher interest rates and economic pressures.

It warned that elevated bad-loan levels could weigh on profitability, lending capacity and overall risk resilience if credit discipline weakens.

It added, “Rising NPLs pose a direct threat to banks’ profitability, credit availability, and overall risk-bearing capacity. This underscores the need to sustain measures to ensure that, worsening NPLs do not weaken banks’ balance sheets, impair asset quality, and trigger systemic contagion. Although recent gains in capital adequacy and liquidity ratios provide a buffer, these indicators remain susceptible to unforeseen macroeconomic shocks.”