E-Financial
Banks Write-Off N1.9tTrillion Bad Debts in 4 Years- Report
Agusto & Co, a foremost rating institution in Nigeria, has disclosed that a minimum of N1.9 trillion impaired loans has been written off by commercial and merchant banks operating in Nigeria from their loan portfolio in the last four years.
Agusto & Co in a report showed that the banks restructured N7.8 trillion loans within the period following the directive by the Central Bank of Nigeria (CBN) in March that permitted banks to restructure loans to businesses that have been severely impacted by the Coronavirus (COVID-19) pandemic.
The firm stated in its “2020 Banking Industry Report”, that the volume of write-offs have been driven by the weak macroeconomic climate and the introduction of the International Financial Reporting Standard (IFRS) 9 accounting standard in 2019.
According to the report, the industry’s asset quality is further threatened given the significant exposures to vulnerable sectors, but, it however, affirmed that the level of asset quality deterioration would be moderated by the CBN’s permitted loan restructuring to certain sectors of the economy.
It stated: “While the forbearance to restructure some loans is expected to keep the industry’s impaired loan ratio, which stood at 7.6 percent as at 31 December 2019, at bay in the short term, Agusto & Co. is concerned about the performance of these affected loans, given that the coronavirus pandemic is yet to be curtailed and a second wave may be looming.
A further slowdown in economic activities and a total lockdown may worsen an already bad situation. “While we acknowledge a likely extension of the forbearance period in the event that the pandemic lingers, we expect a rise in the impaired loan ratio of the banking industry in the medium term.
“Our expectations are also driven by the regulatory-induced growth in the loan book driven by the minimum loan-to-deposit ratio (LDR) policy, with sanctions on banks for non-compliance through additional Cash Reserve Ratio (CRR) debits.
“We believe that banks should not be forced to lend as this may encourage weaker risk management practices. Furthermore, the foreign currency component of these restructured loans, largely in the oil and gas and power sectors bloat the exposures in the likely event of a further devaluation of the domestic currency.”
Agusto & Co further stated that approximately 23 per cent of the industry’s gross loans and advances was classified in the stage two category as at 31 December 2019, saying that it threatens the industry’s capital base and profitability.
“Agusto & Co. believes that the volume of stage two loans is a threat to the industry’s asset quality and future profitability. Stage two loans, primarily, comprise exposures with an increase in the associated credit risk compared to when the loan was disbursed. The COVID-19 pandemic with its impact on businesses has elicited an increase in the volume of stage two loans.
“The COVID-19 pandemic is a further threat to capital. While most operators have a core capital base that very well exceeds the regulatory minimum, the banking industry will need to recapitalise in the medium term in view of proposed new minimum capital requirements, though yet to be disclosed by the apex bank,” it said.
PalmPay, Nigeria’s leading digital banking platform, has once again demonstrated its leadership in driving the nation’s payment revolution. In a landmark development for Nigeria’s digital economy, PalmPay, in collaboration with Wema Bank, completed the first live transaction on the Nigeria Inter-bank Settlement System (NIBSS) National Payment Stack (NPS), a next-generation infrastructure designed to redefine how money moves across the country.
The first live transaction, which happened at exactly 11:56 am on Friday, November 7, 2025, marks a new era in Nigeria’s financial innovation journey and reinforces PalmPay’s role as a trusted pioneer in the payment ecosystem.
This achievement rides on the back of the brand’s growing reputation as a fintech innovator, following recent global recognitions as Financial Times Africa’s Fastest-Growing Companies 2025 and CNBC and Statista’s Top 300 Global Fintech Companies for two consecutive years (2024 and 2025) for its impact, scale, and commitment to inclusive growth across emerging markets.
A Milestone that Redefines the Future of Payments
The National Payment Stack (NPS), powered by NIBSS, builds on the success of the NIP infrastructure, introducing greater speed, interoperability and real-time settlement across the financial ecosystem. Designed to meet international standards, NPS enhances cross-border payment capabilities while introducing more advanced security features, including digital signatures and multi-factor authentication to safeguard users and institutions.
Beyond its technical advancements, the National Payment Stack (NPS) sets a new benchmark for Nigeria’s leadership in Africa’s finance landscape. Through the ISO 20022 global messaging standards, Nigeria is now positioned as a regional hub for seamless and secure cross-border transactions.
Commenting on the landmark achievement, the Managing Director/Chief Executive Officer of the NIBSS, Premier Oiwoh, said: “We commend PalmPay for this historic achievement as one of the key collaborators in executing the first successful transaction on the National Payment Stack (NPS). This milestone reflects our shared
commitment to advancing a faster, safer and more interoperable payment ecosystem for Nigeria. The NPS represents the next frontier of innovation designed to power inclusion, efficiency and growth across the financial industry. We look forward to more institutions coming on board as we collectively shape the future of payments in Nigeria and across Africa.”
Also speaking, Jaipei Yan, Group Chief Commercial Officer at PalmPay, stated, “This achievement is a win for Nigeria and Nigerians. PalmPay is all about providing smarter banking solutions. Since our launch six years ago, we have focused on bridging the gap between innovation and everyday financial inclusion. It was an absolute delight to work with NIBSS and other stakeholders on this remarkable milestone.”
By pioneering this milestone, PalmPay not only strengthens its credibility but also reinforces its alignment with the Central Bank of Nigeria’s drive toward a digital, connected economy. From ranking among the world’s leading fintech brands to executing Nigeria’s first live transaction on a national payment infrastructure, PalmPay is proving that innovation, when purpose-driven, can transform economies.
Looking ahead, PalmPay aims to accelerate its vision of a connected, digital, and financially inclusive Africa, combining global standards with local relevance to build technology that truly empowers people and businesses.
Senate has requested the Central Bank of Nigeria (CBN) and the Federal Inland Revenue Services (FIRS) to provide detailed information on revenue generated from Stamp Duty payments.
Sen. Aliyu Wadada, chairman of the Senate Committee on Public Accounts, made this known while briefing newsmen in Abuja on Thursday, according to the News Agency of Nigeria (NAN).
Wadada said the investigation is aimed at ensuring that the government maximises its revenue from the stamp duty, which according to him is a significant source of income for the country.
He said the committee had written to all commercial banks to furnish it with information, accompanied with figures as to how much that particular bank or collectively all the commercial banks have been able to generate from 2016 to 2024 as Stamp Duty Revenue.
He said, “It is of course, by law, expected that whatever these commercial banks put together as revenue from Stamp Duty, charged by the banks, is or are supposed to be remitted to the CBN.
“So, the committee has written to the CBN to furnish it with information, accompanied with figures as to how much has actually been remitted by these commercial banks with CBN and how much the CBN has remitted to the TSA.
“The second category is of course limited liability companies and oil and gas companies. They also charged Stamp Duty like commercial banks. The committee has also written to them.
“This committee has also written to the FIRS for it to furnish the committee with information that should also be accompanied with figures as to how much FIRS has generated on this category of Stamp Duty.”
Wadada said given the need to make the exercise all-encompassing, the committee had also written the Nigerian Governors Forum (NGF) to also provide information on how much they have received as proceeds of Stamp Duty.
He said given the effort and commitment of President Tinubu’s administration to providing needed infrastructure, concerted efforts should be made to ensure generation of revenue and its effective utilisation for the good of Nigerians.
Commercial banks have asked customers to link their accounts to their national identification numbers (NINs) or tax identification numbers (tax IDs) ahead of the implementation of the new tax laws.
In separate notices to customers, the banks said the new laws require all bank accounts to be linked to a tax ID before the effective date.
The financial institutions said customers without a tax ID are required to link their accounts to an NIN.
In a notice, Fidelity Bank stated that under the Nigerian Tax Administration Act (NTAA) 2025, all bank accounts must be linked to a tax ID or NIN by January 1, 2026.
“This implies that accounts without Tax ID or National Identity Number may be restricted from transacting as from January 1, 2026,” the bank said.
“To ensure your account remains accessible, please update your NIN on your account as soon as possible.
“Please use any of the options below to submit your NIN today: Click HERE or visit the NIN portal on our website. Dial *770*02# and follow the prompts.”
Similarly, Ecobank urged its customers to link their NINs on or before November 13, 2025, warning that failure to comply would result in restrictions being placed on accounts.
“You can easily link your NIN and update your account details through the Ecobank Customer Information Portal at https://customerupdate.ecobank.com/ciu/login by following these steps: select update your account details, enter your account number,” Ecobank said.
“Choose your preferred OTP delivery method, select request type and choose NIN updates, input your NIN, then re-enter it for VNIN (verification), click submit to complete the process.
“Alternatively, you may contact your relationship manager or visit the nearest Ecobank branch.”
On September 9, 2025, the federal government gazetted Nigeria’s new tax reform laws, with the implementation set to begin on January 1, 2026.
The laws are the Nigeria Tax Act (NTA) 2025, the NTAA 2025, the Nigeria Revenue Service (establishment) Act, 2025 (NRSEA), and the Joint Revenue Board (establishment) Act, 2025 (JRBEA).FCCPC Sets Deadline For Lending Regulatory Compliance
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