Nine of Nigeria’s leading banks generated a combined N14.26 trillion in interest income in 2024, reflecting a 119.55 percent increase from N6.49 trillion in 2023.
This is according to the audited financial statements submitted to the Nigerian Exchange Limited (NGX) by Access Holdings, First Holdco (parent company of FirstBank), Guaranty Trust Holding Company (GTCO), Zenith Bank Plc, United Bank for Africa (UBA), Fidelity Bank, FCMB Group, Stanbic IBTC Holdings, and Wema Bank.
In contrast, the manufacturing sector, also known as the real sector, reported operational costs of N2.5 trillion in the same year, raising concerns about the growing burden of funding and energy costs for Nigerian manufacturers.
Access Holdings recorded a 98.69 percent increase in interest income, rising from N1.56 trillion to N3.11 trillion. Zenith Bank followed closely with a 137.74 percent jump to N2.72 trillion, while First Holdco reported a 155 percent surge to N2.39 trillion. UBA saw its interest income rise to N2.37 trillion, a 120 percent increase, while GTCO recorded N1.32 trillion, up by 148 percent. Stanbic IBTC also posted growth, with interest income hitting N566 billion, an increase of 109 percent.
Among the mid-tier banks, FCMB Group’s interest income rose by 75.16 percent to N621.81 billion. Fidelity Bank grew by 85.03 percent to N803.05 billion, and Wema Bank increased by 91.03 percent to close the year at N354.63 billion, up from N185.64 billion in 2023.
In terms of percentage growth, First Holdco led the group, followed by GTCO and Zenith Bank. However, in actual naira value, Zenith Bank had the highest gain, recording a N1.58 trillion increase in interest income, followed by Access Holdings with N1.54 trillion and First Holdco with N1.46 trillion.
Some banks indicated that a portion of their interest income was derived from non-performing loans. Zenith Bank’s impaired financial assets amounted to N18.25 billion for both the group and the bank in 2024, down from N29.09 billion and N5.48 billion respectively in 2023. UBA stated that it accrued N4.26 billion in interest income on impaired loans for the group and N3.98 billion for the bank, compared to N4.64 billion and N2.70 billion respectively in the previous year. Fidelity Bank reported earning N8.10 billion from bad loans, up from N6.19 billion in 2023.
The surge in interest income across the banking sector is attributed to the increase in benchmark interest rates by the Central Bank of Nigeria’s Monetary Policy Committee. The MPC raised the Monetary Policy Rate by 875 basis points during the year, moving it from 18.75 percent in 2023 to 27.50 percent by December 2024. The hike was aimed at curbing inflation, which reached 34.80 percent by the end of the year, up from 28.92 percent in December 2023. As of March 2025, following a Consumer Price Index rebase in January, Nigeria’s inflation and interest rates stood at 24.23 percent and 27.50 percent respectively.
While the financial sector celebrated record earnings, key players in the manufacturing sector expressed frustration over the impact of high interest rates. Speaking at a recent CBN and Bankers Committee Town Hall in Lagos, the President of the Manufacturers Association of Nigeria, Francis Meshioye, lamented that manufacturers spent about N1.3 trillion on interest payments in 2024, with energy costs accounting for another N1.2 trillion. He noted that funding accounted for 30 to 35 percent of production costs, while energy consumed 30 to 40 percent.
In response to these challenges, the Chief Executive of the Centre for the Promotion of Private Enterprise has called on the Central Bank to halt further rate hikes, warning that continued tightening could stifle business growth and threaten the recovery of the real sector.
