Five Domestic Systemically Important Banks (D-SIBs) accounted for more than half of Nigeria’s banking industry assets, deposits and credit at the end of 2025, prompting the Central Bank of Nigeria (CBN) to sustain enhanced supervision of the institutions, according to its 2025 Annual Report and Statement of Accounts.
- +CBN tightens oversight as five banks hold 57% of industry assets
The five D-SIBs included Access Bank, GTBank, First Bank of Nigeria, United Bank for Africa and Zenith Bank.
The five D-SIBs included Access Bank, GTBank, First Bank of Nigeria, United Bank for Africa and Zenith Bank.
The report showed that the five designated D-SIBs controlled N94.87 trillion, or 57.19 percent, of the banking industry’s total assets of N165.89 trillion as of December 31, 2025.
The institutions also accounted for N64.39 trillion, representing 58.44 percent of the industry’s total deposits of N110.19 trillion, and N33.48 trillion, or 57.37 percent, of aggregate industry credit, which stood at N58.36 trillion.
The CBN said the five banks retained their designation as Domestic Systemically Important Banks during the review period and continued to be subjected to enhanced supervision because of the significant impact their failure could have on the stability of Nigeria’s financial system.
According to the report, the designated banks remained compliant with prudential requirements during the year, while efforts to strengthen the regulatory and supervisory framework for D-SIBs remained a priority to ensure the continued safety and soundness of the financial system.
The report also showed that Nigeria’s banking sector remained sound and stable in 2025, with key financial soundness indicators largely within regulatory thresholds.
The industry’s liquidity ratio improved to 60.27 percent at the end of December 2025 from 48.57 percent a year earlier and 39.98 percent in 2023, reflecting the continued build-up of liquid assets relative to current liabilities.
Only one bank fell below the minimum regulatory liquidity ratio at the end of 2025, compared with five banks in the previous year, indicating improvements in liquidity management across the industry.
The capital adequacy ratio, however, moderated to 12.35 percent from 15.25 percent in December 2024 as stronger banking activity and financial intermediation increased risk-weighted assets.
The CBN said the moderation reflected the expansion of banks’ loan portfolios and associated risks but expressed confidence that the ongoing recapitalisation programme would significantly strengthen capital buffers.
According to the report, all banks were required to meet the revised minimum capital requirements by March 31, 2026. The recapitalisation exercise is expected to improve banks’ capacity to support businesses, deepen financial intermediation, reinforce resilience against domestic and external shocks and contribute to Nigeria’s ambition of building a $1 trillion economy.
The report also showed that the industry’s non-performing loan ratio rose to 7.51 percent in December 2025 from 4.50 percent a year earlier, exceeding the prudential threshold of 5 percent. The CBN attributed the increase to post-forbearance adjustments, describing it as a return to standard credit risk recognition and greater transparency.
