Nigeria's FUGAZ banks face record N2.365 trillion in loan impairment charges
Nigeria’s five largest banks—collectively known as FUGAZ—reported their full-year audited results for 2025, revealing a sharp rise in loan impairment charges. Combined, these banks set aside N2.365 trillion to cover bad loans, marking the highest provision in three years. The figure also reflects a 64% increase compared to 2024.
The five institutions—First HoldCo Plc, United Bank for Africa Plc, Zenith Bank Plc, Access Holdings Plc, and Guaranty Trust Holding Company Plc—also saw their total loans and advances to customers grow by 8%, reaching N43 trillion by the end of 2025. Zenith Bank Plc recorded the largest impairment charges among the group, with provisions hitting N843.4 billion in 2025. This surge contributed significantly to the overall rise in loan loss allowances across the sector.
First HoldCo Plc followed closely, reporting net impairment charges of N786.8 billion. United Bank for Africa Plc also saw a steep increase, with its provisions climbing 54% to N381 billion. Access Holdings Plc, despite expanding its customer loan book to N13.34 trillion, recorded the second-lowest impairment charges at N287 billion.
In contrast, Guaranty Trust Holding Company Plc bucked the trend, reducing its impairment charges by 51.40%. Its net provisions fell to N66.4 billion, the lowest among the five banks. The combined interest income from loans and advances for all five institutions reached N7.1 trillion, forming nearly half of their total interest income of N14.5 trillion.
The latest figures show a stark rise from 2023, when the banks collectively set aside N916.54 billion for loan impairments. The 2025 provisions highlight growing concerns over asset quality in Nigeria’s banking sector. The N2.365 trillion impairment charges underscore the rising risks in the banks’ loan portfolios. With total customer loans now at N43 trillion, the sector faces increased pressure to manage credit quality. The results also reveal significant differences in how each bank is handling loan loss provisions.
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