Nigerian banks generated N14tn from loans – Report - Newstrends
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Nigerian banks generated N14tn from loans – Report

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Nigerian banks generated N14tn from loans – Report

Nine leading Nigerian banks raked in a staggering combined interest income of N14.26 trillion in 2024, reflecting a sharp increase in borrowing costs for businesses, especially manufacturers.

According to an analysis of the audited financial results filed with the Nigerian Exchange Limited, the banks First Holdco, Guaranty Trust Holding Company, Zenith Bank Plc, United Bank for Africa, FCMB Group, Fidelity Bank, Stanbic IBTC Holdings, Access Holdings, and Wema Bank recorded a 119.55% surge in interest income compared to N6.49 trillion in 2023.

While these financial institutions reported massive earnings from interest on customer loans, manufacturers bore the brunt of the high cost of borrowing. Reports show that the manufacturing sector incurred a total of N1.3 trillion in loan-related expenses during the same period, further tightening the grip of financial pressure on Nigeria’s struggling industrial base.

According to the Corporate Finance Institute, interest income is the amount paid to an entity for lending its money or letting another entity (individual or corporate) use its funds.

Commercial banks, in their financial intermediary roles, provide funding for the productive sectors of the economy.

A breakdown of the results of the nine banks showed that Access Holdings grew its interest income by 98.69 per cent to N3.11tn from N1.56tn in the previous year.

Zenith Bank’s interest income rose by 137.74 per cent to N2.72tn. First HoldCo, the parent company of FirstBank, saw its interest income increase by 155 per cent to close at N2.39tn.

Also appreciated by more than 100 per cent were the interest incomes to United Bank for Africa, N2.37tn (120 per cent), Guaranty Trust Holding Company, N1.32tn (148 per cent), and Stanbic IBTC Holdings, N566bn (109 per cent).

The interest income of FCMB Group rose by 75.16 per cent to N621.81bn. That of Fidelity Bank rose by 85.03 per cent to N803.05bn, and Wema Bank’s interest income increased by 91.03 per cent to close the year at N354.63bn from N185.64bn.

The financial institution with the highest interest income in percentage terms was First HoldCo, followed by GTCO and Zenith Bank Plc.

In actual terms, Zenith Bank raked in the highest interest income of N1.58tn, followed by Access Holdings, which recorded a N1.54tn increase compared to last year, and First HoldCo with N1.46tn.

Meanwhile, some of the lenders indicated that the interest income was accrued on bad loans.

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For Zenith Bank, impaired financial assets amount to N18.25bn and N18.25bn (2023: N29.09bn and N5.48bn) for Group and Bank, respectively.

UBA said, “Interest income includes accrued interest on impaired loans of N4.26bn for the Group (Bank: N3.98bn) for the year ended 31 December 2024 and N4.64bn for the Group (Bank: N2.70bn) for the year ended 31 December 2023.”

Fidelity Bank indicated that its interest income on bad loans amounted to N8.10bn (2023: N6.19bn).

This revenue boost for the financial sector came on the back of sustained hikes in the Monetary Policy Rate by the Monetary Policy Committee of the Central Bank of Nigeria.

By the end of 2024, the MPC had increased the MPR by 875 basis points, pushing the benchmark rate from 18.75 per cent in 2023 to 27.50 per cent. A major argument for the MPC’s decision to hike rates was inflation.

The committee emphasised commitment to price stability as the bedrock of a thriving Nigeria, which necessitates substantial monetary tightening as headline inflation rose to 34.80 per cent as of December 2024.

On a year-on-year basis, the headline inflation rate was 5.87 per cent higher than the rate recorded in December 2023 (28.92 per cent).

This shows that the Headline inflation rate (year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e., December 2023).

While the banks raked in trillions of naira from interest incomes, the real sector is not happy with the situation as funding costs climb.

Speaking at the recent Bankers Committee Town Hall, which the CBN organised in collaboration with the Bankers Committee in Lagos, the President of the Manufacturers Association of Nigeria, Francis Meshioye, decried the high cost of funding for businesses.

He said, “Manufacturers spent about N1.3tn on interest rate; the cost of funds last year, 2024, and that is huge. Next is the cost of energy, which was about N1.2tn. It’s between 30 and 35 per cent for the cost of funding and 30-40 per cent for the cost of energy.

“The fund that we use to pay for power is charged at around 35 per cent. We are paying 35 per cent for funds to pay for power. Some are even paying 37 per cent. How do you survive this?

“These two are very important things to address to be sure that we become competitive. Have we thought of getting long-term funding for manufacturers or businesses? We need to think outside the box.”

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Meshioye urged the banks to tone down their drive for profit, stressing that the high interest rates were stifling manufacturers.

“It’s very clear that if we want to achieve anything meaningful, we must look at infrastructure, particularly power. We have the power to do so many things. 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?” he challenged the banks.

As the banks rake in trillions of naira, experts warned that Nigeria’s spiralling interest rates, now well above 20 per cent, are worsening poverty and crippling access to credit for small-scale entrepreneurs and farmers, further threatening the fragile economy.

The CBN has been adopting an aggressive monetary tightening, with the Monetary Policy Rate around 24.75 per cent, making commercial lending rates range between 28 per cent and 35 per cent. The high rates have made it nearly impossible for most businesses and individuals in the productive sectors to access affordable financing.

Financial analysts had argued that while the central bank aims to curb inflation, the unintended consequence has been a severe credit crunch in sectors critical to employment and economic growth.

They noted that small and medium enterprises, which make up the backbone of Nigeria’s economy, were being squeezed out of the credit market, and farmers were increasingly unable to fund the next planting season.

At the same time, commercial banks are thriving. With risk-free government securities and high-interest lending, banks are posting record profits, while investment in the real economy, including agriculture, manufacturing, and small-scale industries, continues to collapse.

According to the National Bureau of Statistics, over 133 million Nigerians are living in multidimensional poverty. Rising borrowing costs are making it harder for individuals and businesses to access funds for investment, expansion, or even basic survival.

A senior analyst at Financial Derivatives Company, Tunde Ajayi, recently said the imbalance reflects a serious distortion in Nigeria’s financial architecture, one that prioritises the profitability of banks over the health of the real economy.

According to Ajayi, commercial banks are making windfall profits by investing heavily in risk-free government securities and offering loans at exorbitant interest rates to a few large borrowers, while critical sectors such as manufacturing, agriculture, and small and medium enterprises are being financially strangled.

“This model is unsustainable. What we have is a system where banks are incentivised to lend to the government or big corporations at high yields, while millions of small businesses and farmers are left without access to the capital they need to grow,” he mentioned.

He further warned that the long-term implications are dangerous, as it undermine economic diversification, domestic production, and employment generation.

Ajayi stressed that without affordable credit, the real sector responsible for creating jobs and driving inclusive growth will continue to shrink, further widening the gap between the rich and the poor.

Also, an agricultural finance consultant, Ngozi Uko, warned that the situation is even more dire for rural farmers.

“Access to credit for smallholder farmers has virtually dried up. We are seeing a drop in agricultural productivity, which is directly linked to the rise in food prices. Food inflation is now at over 35 per cent, and it’s pushing more Nigerians into hunger,” Uko said.

 

Nigerian banks generated N14tn from loans – Report

(Punch)

Business

NNPCL, Marketers Increase Petrol Price Again Within 24 Hours After Dangote Refinery Hike

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supply stabilization

NNPCL, Marketers Increase Petrol Price Again Within 24 Hours After Dangote Refinery Hike

The Nigerian National Petroleum Company Limited and several independent filling stations across Nigeria have increased the pump price of Premium Motor Spirit (PMS) for the second time in less than 24 hours, following a fresh hike in the gantry price by Dangote Petroleum Refinery.

The development has led to another round of adjustments at retail outlets nationwide, with petrol prices now exceeding ₦1,040 per litre in some parts of the country, particularly in major cities.

Dangote refinery gantry price triggers increase

Industry sources said the latest increase was triggered after Dangote Refinery raised its ex-gantry price of petrol to about ₦995 per litre, up from around ₦874 per litre, forcing marketers and distributors to adjust their retail prices.

The gantry price refers to the amount marketers pay to lift products directly from the refinery before adding transportation, distribution and retail margins.

Following the adjustment, many filling stations immediately reviewed their pump prices upward.

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New pump prices across stations

Checks at filling stations in Lagos, Abuja and other cities showed that:

  • Some NNPCL retail outlets now sell petrol at about ₦1,040 per litre.
  • Independent marketers are selling between ₦1,050 and ₦1,057 per litre, depending on location and logistics costs.
  • A few stations are already approaching ₦1,080 per litre in high-cost distribution areas.

The adjustment represents the second increase within 24 hours, reflecting the rapid reaction of marketers to rising depot prices.

Rising crude prices and market pressures

Energy analysts attribute the price hike to several factors, including:

  • Rising global crude oil prices
  • Increased operational and logistics costs
  • Market-driven pricing under Nigeria’s petrol deregulation policy

Since the removal of fuel subsidy by the Federal Government in 2023, petrol prices have largely been determined by market forces rather than government-controlled pricing.

Public reaction

The latest increase has sparked concerns among motorists, transport operators and small businesses, many of whom say the rising cost of petrol will further increase transportation fares and the general cost of living.

Transport unions in some cities have already hinted that fares may be reviewed if the price trend continues.

Economic analysts warn that persistent increases in petrol prices could worsen inflationary pressures, given the heavy dependence of Nigeria’s economy on petrol-powered transportation and generators.

NNPCL, Marketers Increase Petrol Price Again Within 24 Hours After Dangote Refinery Hike

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Railway

NRC seeks state backing for railway police, unveils plan to electrify rail lines

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NRC seeks state backing for railway police, unveils plan to electrify rail lines

 

The Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa, has called for stronger collaboration between state governments and the railway police, warning that safeguarding rail infrastructure is central to protecting Nigeria’s mobility corridors and sustaining economic growth.

Speaking on Sunrise Daily, a flagship programme on Channels Television, on Saturday, Opeifa said the railway police currently operate in 26 states and should be treated by state governments as an integral part of their local security architecture.

According to him, rail lines cut across multiple states and serve as critical national assets whose protection requires coordinated security efforts beyond federal agencies alone.

“The security of railway infrastructure is tied to the security of our mobility corridors,” he said, urging state authorities to actively support the Railway Police to prevent vandalism and other threats to the network.

Drawing from his experience as a former commissioner in Lagos, Opeifa recalled how Railway Police personnel once assisted the state government during the cleanup of the Oshodi transport hub, describing it as an example of how inter-agency collaboration can protect strategic public infrastructure.

“The history of the Nigerian Railway Corporation is the history of Nigeria itself,” he said, noting that the challenges facing the rail system often mirror broader national development issues.

Opeifa traced the current wave of railway modernisation to 2015, when the country began shifting from narrow gauge to modern standard gauge rail lines under the administration of former President Muhammadu Buhari.

He noted that several landmark rail projects were delivered during that period, including the Abuja–Kaduna Railway, Warri–Itakpe line, Abuja Rail Mass Transit and the Lagos–Ibadan Railway, while work also began on the ambitious Port Harcourt–Maiduguri corridor.

The NRC boss also highlighted the constitutional amendment that moved railway from the Exclusive Legislative List to the Concurrent List, saying the reform has opened the door for states such as Lagos, Kano, Ogun and Plateau to participate more actively in rail development.

He disclosed that the corporation has developed a national rail map that shows how emerging state rail projects can connect with the national rail network to create a more integrated transport system.

As part of its long-term strategy, Opeifa revealed that the NRC plans to electrify major rail corridors within the next five years, starting with Warri and Lagos where gas resources could support power generation for electric train operations.

He said electrification would improve efficiency, reduce operating costs and align Nigeria’s railway operations with global best practices.

Beyond infrastructure expansion, the NRC chief also addressed operational challenges such as ticket racketeering, attributing the problem largely to high passenger demand.

To curb the practice, he said the corporation has introduced a double verification process for passengers—one check at the waiting area and another during boarding—which has significantly reduced illegal ticket sales.

Opeifa further assured travellers that security on the Abuja–Kaduna corridor remains strong, noting that train operations and station activities are monitored from a central control room. He added that the corporation plans to replicate similar monitoring systems on other routes.

In response to rising passenger traffic, he disclosed that the number of daily trips on the Abuja–Kaduna Train Service has been increased to three.

Looking ahead, Opeifa said the corporation is also exploring ways to harness the tourism and entertainment potential of railway services, promising that the NRC will continue expanding operations while positioning rail transport as a key driver of national integration and economic development.

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Auto

Jetour shakes Compact SUV segment with loaded X50

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Jetour shakes Compact SUV segment with loaded X50

 

Jetour Nigeria says its aim at introducing the current X50 model is to disrupt the compact Sports Utility Vehicle (SUV) segment in the nation’s automobile market. And that it s currently doing.

The Jetour X50 stands out as a feature-rich compact SUV, designed to deliver a high level of safety, technology and comfort for everyday driving.

Built with a strong focus on occupant protection, the vehicle is equipped with multiple airbags for the driver and passengers, ensuring all-round safety while on the road.

Supporting these passive safety features are advanced electronic systems that enhance stability and control. Vehicle Stability Control helps the SUV remain balanced in challenging conditions, while the Electronic Parking Brake and Auto Hold system improve ease of use in traffic and during parking.

Driver confidence is further boosted by the availability of a 360-degree surrounding camera and parking sensors, which provide improved visibility in tight spaces.

To address common on-road safety concerns, the X50 incorporates a range of intelligent driver-assistance features. Blind Spot Detection reduces the risk of unseen vehicles, while Lane Change Assist and Rear Traffic Alert offer added protection during lane changes and reversing.

Additional security features such as automatic door locking, an alarm system and power windows contribute to peace of mind.

Inside the cabin, comfort and convenience take centre stage. Smart entry with a push-start button simplifies vehicle access, while selectable drive modes—Eco, Normal and Sport—allow drivers to adapt performance to different driving conditions.

Cruise control adds extra comfort on longer journeys.The infotainment system features a 10.5-inch display with Bluetooth connectivity, voice command, phone mirroring, Apple CarPlay and Android Auto, ensuring seamless connectivity on the move.

A wireless charger keeps devices powered without cables. Premium interior appointments include leather seats, a power-adjustable driver’s seat, automatic air conditioning with rear vents, an electric sunroof option and a six-speaker audio system.

Power comes from a 1.5-litre turbocharged four-cylinder engine paired with a dual-clutch transmission, offering a balance of responsive performance and fuel efficiency.

With its aerodynamic design and practical five-seat layout, the Jetour X50 combines modern features with everyday usability, backed by reliable after-sales support and technical assistance.

Its accredited dealers spread across Nigeria are Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Kojo Motors, Germaine Auto Centre, Tab Autos Limited, R. T. Briscoe Motors and Mandilas Autos.

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