In the first three months of 2025, Nigeria’s 10 biggest banks said their total assets had grown to ₦218.99 trillion, up from ₦212.75 trillion at the end of 2024. This is according to a report by Nairametrics published on May 19, 2025.
At first glance, this looks like a big success — proof that Nigeria’s banking sector is strong despite inflation, a weak economy, and unstable exchange rates. But in reality, most of this growth is not from real business expansion or innovation. It mainly comes from customer deposits and paper value increases caused by inflation and currency devaluation.
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According to the banks’ own reports, ₦164.7 trillion — about 75% of their total assets — comes from people’s deposits. This means that three-quarters of what banks call “assets” are actually money belonging to customers, not wealth the banks created.
Here’s how customer deposits are shared among the top banks:
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Access Bank – ₦38.86 trillion
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Ecobank – ₦33.21 trillion
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UBA – ₦25.65 trillion
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Zenith Bank – ₦22.68 trillion
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First Bank – ₦17.27 trillion
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GT Bank – ₦10.89 trillion
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Fidelity Bank – ₦6.60 trillion
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FCMB – ₦4.13 trillion
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Stanbic IBTC – ₦3.05 trillion
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Wema Bank – ₦2.41 trillion
Total deposits: ₦164.75 trillion
This heavy dependence on customer deposits shows that Nigerian banks look rich on paper but are weak in innovation and low in real capital strength. Their asset growth is mainly due to inflation, naira depreciation, and gains from government securities, not from funding new businesses or industries.
In simple terms, banks are getting richer, but the economy is not. Despite their growing assets, small businesses, manufacturers, and farmers still find it hard to get loans. Interest rates are high, and collateral demands are tough.
When compared to other countries, the situation looks even more worrying. For example, Standard Bank of South Africa, the largest bank in Africa, reported assets worth about ₦285 trillion as of June 2025 — more than the total assets of Nigeria’s top 10 banks combined.
This shows that while Nigerian banks boast huge figures in naira, they are still small by global standards. South Africa’s Standard Bank is strong because it has more capital, better risk management, and invests in diverse areas. Nigerian banks, on the other hand, depend too much on deposits and foreign exchange gains.
Experts warn that this overdependence on deposits makes the banking system fragile. Deposits are short-term and can easily be withdrawn if people lose confidence, making banks vulnerable to shocks.
The key question now is: What are Nigerian banks doing with all their assets? True financial strength should come from using deposits to fund real economic activities — like infrastructure, agriculture, and technology — not just sitting on paper profits.
Until banks begin to support productive sectors, Nigeria’s ₦219 trillion “asset boom” will remain an illusion — wealth without progress.