Non-Performing Loans at First Holdings Reach 1.49 Trillion Naira
First Holdings has reported a staggering 1.49 trillion naira in non-performing loans (NPLs), significantly exceeding the regulatory requirement of 5%. The current NPL ratio stands at 13.4%, reflecting a concerning trend within Nigeria’s banking sector.
Overall Non-Performing Loans Surge
The withdrawal of regulatory forbearance by the Central Bank of Nigeria (CBN) has intensified the challenges for banks. As of 2025, the total outstanding non-performing loans across the seven banks operating in Nigeria amounted to 3.27 trillion naira, marking a substantial increase of 15.6% from 2.83 trillion naira in 2024.
Expansion in Customer Loans Amid Rising NPLs
This increase in non-performing loans coincides with a robust growth in customer lending, which reached 54.5 trillion naira in 2025, up nearly 8.8% from 50.1 trillion naira in 2024. This surge in loan volumes has been driven by a combination of naira devaluation and the pursuit of higher interest income in an elevated interest rate environment.
Impact of CBN Policy Changes on NPLs
The banking sector faced a renewed challenge in 2025 due to the CBN’s cessation of regulatory forbearance, a measure that had allowed for the rehabilitation of loans impacted by the pandemic without classifying them as non-performing. This policy shift has led to increased scrutiny of banks’ loan portfolios.
First Holdings’ NPL Figures Dominate
Within the sector, First Holdings reported the highest value of non-performing loans at 1.49 trillion naira, marking a 21.1% increase from 1.23 trillion naira in 2024. The group’s NPL ratio at the end of 2025 was noted at 12%, up from 10.20% in the previous year, underscoring the ongoing financial strain.
Other Institutions’ NPL Figures Reflect Broader Trends
United Bank for Africa (UBA) followed closely behind with non-performing loans amounting to 572.19 billion naira, representing a significant increase of 36.5% from 418.09 billion naira in 2024. Its NPL ratio also rose to 7.67%, up from 5.58% in 2024, yet the coverage ratio improved remarkably from 80.85% to 123.60%, indicating proactive credit risk management.
Predictions for Future Non-Performing Loans
Access Holdings has forecasted a rise in its NPL ratio from 2.76% in 2024 to 2.82% in 2025, amounting to 468 billion naira in non-performing loans, a 27.5% rise from 367 billion naira the previous year. “While NPLs remain broadly stable, impairments reflect a more conservative provisioning stance,” the bank stated.
Risk Management Amidst Increasing NPLs
In contrast, Zenith Bank recorded a decrease in non-performing loans to 420.43 billion naira, down 18.6% from the previous year’s 516.71 billion naira. This reduction is attributed to improvements in asset quality. However, GTCO Holdings saw its non-performing loans increase from 144.9 billion naira to 150.04 billion naira, despite a slight decrease in the ratio.
Overall Industry Non-Performing Loan Trends
According to the CBN’s Macroeconomic Outlook, the overall non-performing loan ratio for the banking industry has risen to an estimated 7%, surpassing the prudential limit of 5%. This rise is primarily attributed to the crystallization of previously restructured loans, which lost their special status after forbearance periods ended. The CBN has cautioned that the escalating non-performing loans present increased credit risks, particularly as borrowers face rising interest rates and economic pressures.
