Nigeria
Banking sector profile — Sub-Saharan Africa
Data as of September 2026 • TGB Intelligence Unit
Policy rate as of 7 October 2026: 23.00% (source: Central Bank of Nigeria)
Banking sector at a glance
Structure and performance
Nigeria's banking industry held N165.89tn of assets at end-2025, equivalent to about US$116bn at the official rate. The CBN register lists 28 commercial, five merchant and five non-interest banks. Concentration is high: the five domestic systemically important banks (Access Bank, GTBank, First Bank of Nigeria, UBA and Zenith) held 57.2% of industry assets, 58.4% of deposits and 57.4% of credit in December 2025. The largest lenders are organised under holding companies, several of which own banking subsidiaries outside Nigeria.
The sector has just completed a two-year recapitalisation programme. Minimum capital was raised to N500bn for international licences, N200bn for national and N50bn for regional banks. When the programme closed on 31 March 2026, 33 banks had met the thresholds, raising N4.65tn, of which 72.55% came from domestic investors. Union Bank, Polaris Bank and Keystone Bank, which remain under regulatory intervention or judicial review, were given additional time to complete their capital raising.
Balance-sheet quality weakened as the CBN withdrew pandemic-era regulatory forbearance in June 2025. The industry capital adequacy ratio fell to 12.35% in December 2025 from 15.25% a year earlier, and the non-performing loan ratio rose to 7.51% from 4.50%, above the 5% prudential limit. Liquidity is ample, with the liquidity ratio at 60.27%. However, a 45% cash reserve requirement on naira deposits sterilises a large share of funding and constrains lending capacity and net interest income.
The macro backdrop has improved since the 2023 exchange-rate unification. Headline inflation slowed to 15.39% in August 2026, and gross external reserves reached US$55.25bn on 18 September 2026. This allowed the CBN to cut the Monetary Policy Rate by 50bp to 26.50% in February 2026 and to reset it at 23.00% in September, narrowing the standing-facilities corridor to +50/−300bp. Key risks include further losses on oil and gas loans formerly under forbearance, completion of the three outstanding recapitalisations, and earning adequate returns on the enlarged capital base.
Structural trends
The shifts shaping banking in Nigeria.
Recapitalisation closed on 31 March 2026 with 33 banks meeting the new minimum capital thresholds after raising N4.65tn over 24 months.
Monetary easing: the MPR was cut to 26.50% in February 2026 and reset at 23.00% in September 2026 as inflation slowed to 15.39%.
Asset quality normalised after forbearance ended: the industry NPL ratio rose to 7.51% in December 2025 from 4.50% a year earlier.
Concentration persists: the five D-SIBs held 57.2% of industry assets and 58.4% of deposits at end-2025.
Leading institutions
Largest banks in Nigeria by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | Access Holdings | US$35.4bn | Commercial |
| 2 | United Bank for Africa | US$22.8bn | Commercial |
| 3 | Zenith Bank | US$21.6bn | Commercial |
| 4 | First HoldCo | US$18.7bn | Commercial |
| 5 | Guaranty Trust Holding | US$12.2bn | Commercial |
| 6 | Fidelity Bank | US$7.3bn | Commercial |
| 7 | Stanbic IBTC Holdings | US$6.0bn | Commercial |
| 8 | FCMB Group | US$5.3bn | Commercial |
Total assets, FY2025 audited, consolidated group; converted at the CBN year-end rate of N1,435.26/US$
Supervision and capital rules
The CBN licenses and supervises banks under the Banks and Other Financial Institutions Act 2020. Capital rules follow Basel II, with Basel III guidelines issued in September 2021 on regulatory capital, the leverage ratio, the liquidity coverage ratio and large exposures. Minimum capital adequacy is 15% for internationally licensed banks and 10% for national and regional banks. The 2024–26 recapitalisation raised minimum paid-up capital to N500bn, N200bn and N50bn by licence category. Pandemic-era forbearance ended in June 2025. The cash reserve requirement is 45% for commercial banks and 16% for merchant banks. The NDIC insures deposits up to N5m per depositor at deposit money banks, a cover in place since May 2024. Nigeria was removed from the FATF grey list in October 2025.
What changed in 2026
- February 2026: The Monetary Policy Committee cut the MPR by 50bp to 26.50%, keeping the corridor at +50/−450bp and reserve requirements unchanged.
- April 2026: The CBN formally concluded the recapitalisation programme, confirming that 33 banks had met the revised thresholds and N4.65tn had been raised.
- June 2026: The CBN granted Union Bank, Polaris Bank and Keystone Bank a further window to complete recapitalisation, given their regulatory and judicial circumstances.
- September 2026: The MPC reset the MPR at 23.00% from 26.50% and narrowed the corridor to +50/−300bp, leaving the 45% cash reserve requirement unchanged.
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