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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)

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Jetour Targets Abuja Market with X70 PHEV as Nationwide Expansion Gathers Pace

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September 15, 2026

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Jetour Targets Abuja Market with X70 PHEV as Nationwide Expansion Gathers Pace

Jetour Nigeria is taking its hybrid SUV offensive to Abuja, with the X70 Plug-in Hybrid Electric Vehicle (PHEV) set to headline the three-day Jetour Experience from September 22 to 24 as the automaker accelerates its drive to expand its footprint and capture a larger share of Nigeria’s fast-evolving mobility market.

The Abuja showcase, coming on the heels of a strong Lagos edition that generated significant consumer interest, test drives and sales enquiries, is designed to bring Jetour’s latest technologies closer to customers in the Federal Capital Territory and neighbouring states.

The event at Maha Event Centre, Area 8, will give prospective buyers and auto enthusiasts the opportunity to test-drive the X70 PHEV and other Jetour models while interacting with product specialists and experiencing their technology, safety features, performance and comfort firsthand.

According to the company, expanding the showcase to the Federal Capital Territory was a direct response to rising demand from residents in Abuja and neighbouring states.

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To bolster buyer confidence, Jetour Nigeria—the country’s sole authorised distributor—backs the X70 PHEV with a five-year or 150,000-kilometre warranty.

The distributor operates through an accredited nationwide dealer network, including: Elizade Nigeria Limited,
New Era Auto Vehicle Services Limited, Kojo Motors, Germaine Auto Centre, Tab Autos Limited, R.T. Briscoe Motors, and Mandilas Autos.

The X70 PHEV pairs a 1.5-litre turbocharged engine with a 19.43kWh battery and a dedicated hybrid transmission. Designed to balance performance with fuel efficiency, the vehicle supports fast, slow, engine, and regenerative braking charging options—reducing reliance on external charging infrastructure.

Jetour’s rapid growth in the Nigerian market has earned both private and corporate patronage, driven by competitive pricing, high specification levels, and an expanding service footprint. The brand was named “Fastest Growing Auto Brand of the Year” at the 2024 Nigeria Auto Journalists Association (NAJA) Awards.

With the X70 PHEV leading the Abuja showcase, Jetour aims to deepen customer engagement and consolidate its position in the local automotive market.

 

Jetour Targets Abuja Market with X70 PHEV as Nationwide Expansion Gathers Pace

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Sanwo-Olu Joins Dangote as Historic N2.15tn Refinery IPO Opens on Nigerian Exchange 

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September 15, 2026

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L-R: President, Aliko Dangote Group, Alhaji Aliko Dangote; Managing Director/CEO, Nigerian Exchange Group, NGX, Mr Temi Popoola; Governor of Lagos State, Mr. Babajide Sanwo-Olu and Executive Director, Commercial Operations, Dangote Group, Fatima Dangote, during the opening of Dangote Petroleum Refinery Initial Public Offer (IPO) at the NGX building, Marina, Lagos, on Monday, September 14, 2026.

Sanwo-Olu Joins Dangote as Historic N2.15tn Refinery IPO Opens on Nigerian Exchange 

 

Lagos State Governor, Babajide Sanwo-Olu, on Monday joined business leaders, investors and capital-market stakeholders as the Initial Public Offering of the Dangote Petroleum Refinery and Petrochemicals formally opened on the Nigerian Exchange, NGX, in Lagos.

The landmark transaction, which could raise about N2.15 trillion, marks one of the biggest capital-market transactions in Nigeria’s history and gives Nigerians and other investors an opportunity to acquire a stake in Africa’s largest oil refinery.

Sanwo-Olu attended the opening ceremony at the NGX Group building in Marina, Lagos, where Dangote Industries President and Chief Executive Officer, Aliko Dangote, sounded the gong to formally commence the public offer.

The IPO comprises 4.1 billion ordinary shares priced at N525 each, with investors allowed to subscribe for a minimum of 10 shares, valued at N5,250. The offer will remain open until October 13, 2026.

The development represents a major milestone for Nigeria’s capital market, as the Dangote Refinery becomes the first refinery to be offered for public subscription on the Nigerian stock market in the 66-year history of the NGX.

The ceremony attracted an array of prominent figures from government, business and the financial sector, including NGX Group Chairman Umaru Kwairanga, NGX Group Managing Director and Chief Executive Officer Temi Popoola, Zenith Bank founder Jim Ovia, Coronation Group Chairman Aigboje Aig-Imoukhuede and Ooni of Ife, Oba Adeyeye Ogunwusi.

Also present were senior executives of Dangote Industries and representatives of the capital-market community.

Dangote described the offer as a “people’s IPO”, stressing that its primary objective was to broaden ownership of the refinery and allow ordinary Nigerians and investors across the world to participate in the wealth created by the massive industrial project.

According to him, the public offer was not primarily about raising funds for the Dangote Group, which he said already had substantial capital available for its expansion plans, but about democratising wealth creation.

 

The refinery is currently designed to process 700,000 barrels of crude oil per day, while Dangote Industries plans to expand its capacity to 1.4 million barrels per day over the coming years. Proceeds from the IPO are expected to support the refinery’s expansion and strengthen its capacity for future growth.

 

The public offer follows a $2.5 billion private placement earlier in the year, which attracted strong institutional interest. Reuters reported that the refinery is valued at about $47.6 billion, making the IPO one of the most significant equity offerings ever undertaken in Africa.

 

The refinery has increasingly become a strategic component of Nigeria’s energy security drive, reducing the country’s dependence on imported refined petroleum products while positioning Nigeria as a potential major exporter of refined products.

 

The opening of the IPO also comes at a time when the Dangote refinery has reported a sharp improvement in its financial performance. Reuters reported that the company recorded a $1.82 billion net profit in the first half of 2026, alongside revenue of more than $13 billion.

 

Dangote has also sought to make the offer accessible to ordinary Nigerians, with subscriptions available through digital investment platforms and other authorised channels. The minimum subscription of 10 shares means an investor can enter the offer with N5,250.

 

The NGX has described the transaction as an important development for the Nigerian capital market, particularly in broadening retail participation and deepening the investment culture.

 

For Lagos, where the refinery is located and where the historic IPO was formally launched, the development further reinforces the state’s position as Nigeria’s dominant commercial and financial centre.

 

With the offer running until October 13, investors will now determine whether the historic transaction achieves its N2.15 trillion target and establishes a new benchmark for public participation in Nigeria’s industrial sector.

 

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X90 Plus Leads Jetour’s Abuja Drive for Bigger SUV Market Share

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2 days ago

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September 13, 2026

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X90 Plus Leads Jetour’s Abuja Drive for Bigger SUV Market Share

 

Jetour Nigeria is taking its premium SUV battle to Abuja, with the seven-seater X90 Plus set to headline the Jetour Experience Abuja from September 22 to 24, as the automaker moves to capture a larger share of Nigeria’s fast-growing high-end family SUV market.

The three-day motoring showcase will give prospective buyers, families and auto enthusiasts in the Federal Capital Territory and neighbouring states an opportunity to experience the X90 Plus and other models in the Jetour range through test drives and hands-on demonstrations.

The Abuja showcase follows the success of the brand’s earlier Jetour Experience in Lagos, where strong customer interest, inquiries and sales momentum reportedly encouraged the company to take the initiative to the Federal Capital Territory.

Jetour Nigeria said growing demand from customers in Abuja and neighbouring states was a major factor behind the decision to expand the experience to the northern market.

Positioned as a full-sized family SUV, the X90 Plus is designed for executives and families seeking a combination of space, technology, performance and comfort without the price tag associated with some luxury SUVs.

The model is offered with 1.6-litre and 2.0-litre turbocharged engines paired with a seven-speed dual-clutch transmission. The powertrain produces up to 254 horsepower and 390Nm of torque.

Inside the cabin, the X90 Plus features a 12.3-inch LCD touchscreen infotainment system, panoramic sunroof, Sony premium audio system and wireless charging.

Its safety and driver-assistance features include a 360-degree panoramic camera, Forward Collision Warning, Lane Departure Warning and electronic stability systems.

Jetour’s growing profile in Nigeria has also earned the brand recognition from the Nigeria Auto Journalists Association (NAJA), which named it Fastest Growing Auto Brand, while it was also recognised as Auto Brand of the Year at the Nigeria Transport Lecture.

To support its expanding customer base, Jetour Nigeria, the sole authorised distributor, operates through seven accredited dealer partners across the country: Elizade Nigeria Limited, Mandilas Autos, R.T. Briscoe Motors, Germaine Auto Centre, Kojo Motors, Tab Autos Limited and New Era Auto Vehicle Services Limited.

The Abuja Experience is expected to provide Jetour with another platform to engage potential customers and reinforce its position in Nigeria’s increasingly competitive SUV market.

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