Nigeria’s banking titans are enjoying a windfall. Interim filings with the Nigerian Exchange show that nine of the country’s largest institutions grew their interest income by 28 percent year‑on‑year, climbing from $14.9 billion in 2023.
The list reads like a who’s who of Nigerian finance: Access Holdings (Herbert Wigwe Estate), First HoldCo (FirstBank, majority owned by Femi Otedola), Zenith Bank (founded by Jim Ovia), UBA (led by Tony Elumelu), GTCO, Stanbic IBTC, Sterling Financial Holding Company, Wema Bank, and Ecobank Transnational Incorporated.
The Numbers Behind the Surge
- Access Holdings led the pack with $3.74 billion, up 21 percent.
- Zenith Bank followed closely at $3.53 billion, posting a remarkable 41 percent jump.
- Ecobank earned $3.01 billion, up 20 percent.
- First HoldCo brought in $2.95 billion.
Together, these four accounted for the lion’s share of the sector’s interest income. Others also posted strong gains: GTCO rose 26 percent to $1.59 billion, UBA grew 10 percent to $2.55 billion, Wema Bank surged 73 percent to $512 million, while Sterling and Stanbic IBTC climbed 39 percent and 37 percent, respectively.
Why Banks Are Cashing In
The boom is largely tied to Nigeria’s high‑interest‑rate environment, which has allowed banks to rake in earnings from loans, securities, and cash reserves. In 2024, net interest income made up 62 percent of operating income, underscoring its central role in profitability.
But the tide may be shifting. In September 2025, the Central Bank of Nigeria cut the Monetary Policy Rate by 50 basis points to 27 percent — the first reduction in years. Governor Olayemi Cardoso explained the move as a response to disinflation momentum.
The Risks Ahead
Global ratings agency Moody’s has cautioned that lower rates could squeeze margins unless loan volumes expand. “We expect yields on loans and government securities to fall faster than the cost of deposits,” the agency warned, noting that deposit costs tend to lag behind lending rate adjustments.
This creates a delicate balancing act: banks must sustain income growth while adapting to policy changes that could erode their profitability.
Beyond Nigeria: A Continental Signal
The story resonates across Africa’s financial markets, where interest income remains the backbone of banking profitability. Nigeria’s billionaires may be celebrating record earnings, but the sector’s future will hinge on how well institutions pivot from a high‑rate windfall to a more competitive, policy‑driven environment.
