Despite tough macroeconomic conditions, ten commercial banks listed on the Nigerian Exchange (NGX) recorded a total of N3.77 trillion in loan impairment charges spanning full-year 2023, full-year 2024, and the first quarter of 2025.
The charges amounted to N1.34 trillion in 2023, increased significantly to N2.13 trillion in 2024, and stood at N297.10 billion in just the first three months of 2025.
Much of the spike in bad loans can be attributed to Nigeria’s macroeconomic volatility, particularly the sharp devaluation of the naira in mid-2023, soaring inflation, and higher interest rates, all of which squeezed corporate margins, cut into household incomes, and raised the cost of servicing debt.
