Nine major Nigerian banks collectively generated N14.26 trillion in interest income in 2024—an impressive 119.55% increase from the N6.49 trillion recorded in 2023.
This information comes from the audited financial statements submitted to the Nigerian Exchange Limited (NGX) by Access Holdings, First Holdco (FirstBank’s parent company), Guaranty Trust Holding Company (GTCO), Zenith Bank Plc, United Bank for Africa (UBA), Fidelity Bank, FCMB Group, Stanbic IBTC Holdings, and Wema Bank.
Meanwhile, the manufacturing sector faced growing financial pressure, with operational expenses hitting N2.5 trillion in 2024, raising alarm over the soaring costs of funding and energy for Nigerian manufacturers.
Access Holdings saw its interest income rise by 98.69%, moving from N1.56 trillion to N3.11 trillion.
Zenith Bank posted a 137.74% increase, reaching N2.72 trillion, while First Holdco recorded a 155% jump to N2.39 trillion.
UBA’s figure climbed by 120% to N2.37 trillion, and GTCO reported N1.32 trillion—up by 148%. Stanbic IBTC’s interest income grew 109% to N566 billion.
Among mid-tier banks, FCMB Group’s interest earnings rose by 75.16% to N621.81 billion. Fidelity Bank’s income increased by 85.03% to N803.05 billion, while Wema Bank recorded a 91.03% rise to N354.63 billion from N185.64 billion in 2023.
In terms of growth rate, First Holdco led the pack, followed by GTCO and Zenith Bank. However, in raw value, Zenith Bank topped the chart with a N1.58 trillion gain, followed by Access Holdings (N1.54 trillion) and First Holdco (N1.46 trillion).
Some of the banks reported that part of their earnings came from non-performing loans. For example, Zenith Bank’s impaired financial assets stood at N18.25 billion in 2024, down from N29.09 billion in 2023. UBA reported earning N4.26 billion from bad loans for the group, while Fidelity Bank’s interest income from bad loans rose to N8.10 billion from N6.19 billion the previous year.
The sharp rise in interest income has been linked to the Central Bank of Nigeria’s aggressive hike in benchmark interest rates.
The Monetary Policy Rate (MPR) surged by 875 basis points in 2024, from 18.75% in 2023 to 27.50% by year-end, as part of efforts to combat inflation, which climbed to 34.80% in December 2024.
Following a Consumer Price Index rebase, inflation and interest rates stood at 24.23% and 27.50% respectively as of March 2025.
Despite the banking sector’s strong performance, manufacturers voiced concern over the impact of high interest rates.
Francis Meshioye, President of the Manufacturers Association of Nigeria, revealed at a recent CBN and Bankers’ Committee Town Hall that manufacturers spent about N1.3 trillion on interest payments and N1.2 trillion on energy in 2024. He said funding accounted for 30–35% of production costs, while energy costs made up 30–40%.
To mitigate these challenges, the Centre for the Promotion of Private Enterprise has urged the CBN to pause further rate increases, warning that continued monetary tightening could stall growth in the real sector.
