A new financial report has revealed that the value of delayed or non-performing loans (NPLs) across six major Nigerian banks has exceeded $3.5 billion, raising fresh concerns over credit risk and asset quality in the country’s banking sector.
The report, compiled by an independent financial consultancy and based on audited financial statements for the 2024 fiscal year, highlights a troubling rise in overdue loans—defined as credit facilities that have not been serviced for more than 90 days.
According to the data, the affected banks include some of Nigeria’s largest lenders by asset size, with analysts attributing the spike in NPLs to macroeconomic headwinds, foreign exchange volatility, and sector-specific challenges in oil and gas, manufacturing, and real estate.
“The increase in delinquent loans underscores the pressure on borrowers in a high-inflation, low-growth environment,” said Bamidele Osho, a banking analyst at Zenith Capital Advisory. “While banks remain capitalized, the growing NPL ratios may affect lending appetite and profitability.”
Industry regulators, including the Central Bank of Nigeria (CBN), have previously set a 5% ceiling for NPL ratios. However, the report suggests that at least three of the six banks surveyed exceeded this threshold in 2024, prompting calls for tighter risk management and enhanced loan recovery mechanisms.
In response to the findings, financial experts are urging a review of lending standards, better risk assessment frameworks, and increased transparency in debt recovery processes.
The CBN has not yet issued an official statement on the report, but insiders say the apex bank is monitoring the trend closely and may consider additional stress tests or policy guidance to prevent systemic risks.
As economic uncertainty persists, the report warns that loan performance could deteriorate further unless proactive fiscal and monetary measures are taken to stabilize business conditions.
