Nine Banks Make N14tn from Loans as Nigerians Struggle with Soaring Borrowing Costs
Nine Nigerian banks made over N14 trillion from interest on loans in 2024, even as inflation and borrowing costs skyrocketed, stifling businesses and pushing more Nigerians into poverty.
An analysis of audited financials filed with the Nigerian Exchange shows that Access Holdings, Zenith Bank, First HoldCo, UBA, GTCO, Stanbic IBTC, FCMB Group, Fidelity Bank, and Wema Bank earned a combined N14.26 trillion in interest income—up by 119.55% from N6.49 trillion in 2023.
Leading the pack was Access Holdings with N3.11tn, followed by Zenith Bank (N2.72tn), and First HoldCo (N2.39tn). Others include UBA (N2.37tn), GTCO (N1.32tn), Stanbic IBTC (N566bn), FCMB (N621.81bn), Fidelity Bank (N803.05bn), and Wema Bank (N354.63bn).
This sharp rise in bank revenues comes on the back of an aggressive monetary tightening stance by the Central Bank of Nigeria (CBN), which raised the Monetary Policy Rate by 875 basis points in 2024, ending the year at 27.50%. Inflation, which peaked at 34.80% in December, worsened the cost of living and made credit even less accessible.
Also Read: Interest Rate Hikes: What Nigerian Business Owners Need to Know
“Manufacturers spent about N1.3tn on interest last year. Some paid as much as 37% interest just to fund power,” said Francis Meshioye, President of the Manufacturers Association of Nigeria.
Advising Banks to rethink their profit-first approach, Meshioye said; “We just need the will and do not always aim to make overly ambitious profits. If you kill the place you make the money from, then how will you survive?”
Financial analysts warn that high interest rates, though aimed at curbing inflation, are starving SMEs and farmers of critical funding—threatening job creation and long-term economic growth.
