E-Financial
How Nigerian Banks Built a N219 Trillion Asset Empire on Depositors’ Funds
By Blaise Udunze
In the first quarter of 2025, Nigeria’s 10 largest banks proudly reported a combined total asset base of N218.99 trillion, up from N212.75 trillion at the end of 2024, according to a report by Nairametrics published on May 19, 2025.
On paper, it looked like a victory as evidence that the sector remains robust despite inflationary headwinds, exchange rate volatility, and a struggling real economy. But beneath that glossy narrative lies a deeper, more uncomfortable truth that reveals Nigeria’s asset boom is not driven by innovation, real-sector productivity, or capital efficiency; rather, it is fueled largely by customer deposits and balance-sheet inflation.
According to data from the banks’ own filings, about N164.7 trillion, representing roughly 75.2 percent of the N218.99 trillion total asset base, came directly from customers’ deposits. In plain terms, three-quarters of the industry’s celebrated “assets” are actually liabilities owed to the public, which are deposits that banks temporarily hold, not capital they generated or invested productively.
Bank Customer Deposits (N Trillion)
Access Holdings / Access Bank 38.8655
Ecobank (Group) 33.2080
Zenith Bank 22.6818
United Bank for Africa (UBA) 25.6500
FBN Holdings / FirstBank Group 17.2699
GTCO (Guaranty Trust) 10.8923
Fidelity Bank 6.5990
FCMB Group 4.1254
Stanbic IBTC 3.0456
Wema Bank 2.4096
Total N164.75 trillion
This dependency on depositors’ funds reveals a system that looks rich in assets but is, in essence, shallow in innovation and weak in capital depth. At first glance, the growth appears dramatic, with the sector’s total assets jumping from N170.02 trillion in 2024, representing a 39.6 percent year-on-year rise, to nearly N219 trillion by Q1 2025. Yet, this “growth” is misleading. Much of it stems not from new value creation but from naira devaluation adjustments, inflationary expansion, and paper gains on government securities.
Banks are becoming bigger on paper, not stronger in impact. The so-called asset expansion has not translated into more affordable credit for manufacturers, small and medium enterprises (SMEs), or agribusinesses. Instead, it reflects a financial system more comfortable with passive wealth storage than active economic stimulation.
In simpler terms, Nigeria’s banks are becoming richer without making the economy stronger. Their balance sheets have ballooned, but their capital efficiency, which represents the ability to convert deposits into productive loans, remains weak.
The false appearance of size becomes even more striking when placed in a continental context. As of June 30, 2025, Standard Bank Group of South Africa, Africa’s largest financial institution, reported total assets of R3.4 trillion, equivalent to $191.8 billion. At Nigeria’s prevailing exchange rate of N1,484.50 to $1, that translates to approximately $191.8 billion × N1,484.50 = N284,983 trillion, or roughly N285 trillion. That means a single South African bank now outvalues the entire Nigerian banking industry, whose 10 largest lenders collectively hold N218.99 trillion in assets.
The comparison is humbling. It highlights how Nigeria’s asset numbers, while massive in naira terms, shrink dramatically when viewed through a global lens. While Standard Bank’s strength stems from robust capitalization, efficient risk management, diversified income streams, and strong regional investments, Nigerian banks remain largely driven by deposit inflows, short-term instruments, and FX revaluation surges.
Moreover, the disconnect between banking prosperity and economic stagnation is becoming impossible to ignore. Despite N219 trillion sitting on bank balance sheets, access to credit for manufacturers, small businesses, and startups remains prohibitively difficult. Lending rates are high, collateral demands are steep, and real-sector credit continues to shrink as a share of GDP. Manufacturing’s contribution to GDP remains in low single digits, private sector credit lags behind African peers, and inflation continues to erode the value of naira-denominated deposits. The banks’ “assets” may rise, but they are paper assets, not productive capital, rather figures that comfort shareholders but fail to transform society.
A banking system overly reliant on deposits is inherently fragile. Deposits are short-term and confidence-sensitive and can flee quickly during periods of policy uncertainty. Unlike equity or long-term capital, they offer little cushion against shocks. This overdependence creates an illusion of liquidity but hides structural weakness. Nigeria’s banks may look stable, but their foundations are vulnerable, just like a tower built on shifting sands of depositor confidence rather than the rock of sustainable capital formation.
For Nigeria’s regulators, analysts, and policymakers, the question is no longer how large the banks’ assets appear, but what those assets are doing for the economy. True strength must come from innovation in financial intermediation, capital efficiency, and credit diversification; support for real-sector growth; and regional competitiveness on the African and global stage.
Until Nigerian banks start to convert deposits into genuine development by funding infrastructure, technology, and enterprise, the industry’s trillion-naira balance sheets will remain a false hope of progress without prosperity. Nigeria’s N219 trillion banking booms may glitter, but it is a reflection of financial inflation, not economic transformation. When one South African bank commands more assets than the entire Nigerian industry combined, it is not just a comparison; it is a revelation.
It reveals how far Nigeria must go to move from deposit dependency to capital creation, from paper prosperity to real productivity, and from illusory balance sheet growth to genuine economic strength. Until that shift happens, Nigeria’s banking system will remain what it is today as a trillion-naira illusion shimmering over a weak economic base.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]
Proparco and Ecobank Group have signed a €10m trade finance guarantee for Small and Medium-sized Enterprises (SMEs) in Africa
The €10m trade finance guarantee facility was signed for Ecobank Chad to facilitate imports of raw materials essential for creating added value in the country.
The programme addresses supply needs not covered by the local market and is part of the Food & Agriculture Resilience Mission (FARM) initiative launched in 2022 by France, together with the European Union, the G7, and the African Union.
Its objective is to strengthen food security in the most vulnerable countries.
This guarantee is also part of the Choose Africa programme run by the AFD Group (Agence Française de Développement, Proparco, and Expertise France), which provides financing solutions to small African businesses, start-ups, micro-enterprises, and MSMEs, supporting them through the various stages of their growth via local partners backed by the AFD Group.
Speaking on the agreement, Jeremy Awori, group chief executive officer, Ecobank, said, “This renewed partnership with Proparco reflects our shared commitment to strengthening the economic resilience of Chad and the wider region, contributing to the implementation of Chad’s new National Development Plan.
“By facilitating access to essential raw materials, we are supporting local industrialisation, food security, and value creation on the continent. Using the combined expertise of our pan-African network and Ecobank International in France, we will continue to support our customers by facilitating trade and strengthening risk management to build sustainable growth.”
Djalal Khimdjee, deputy chief executive officer, Proparco, commented, “We are very pleased to welcome Ecobank Chad to the Trade Finance programme that we have co-developed with the Ecobank Group since 2018.
This new partnership will benefit local businesses, enabling them to import raw materials and become part of the international value chain to better meet the needs of local communities.
This transaction brings the total volume of trade finance guarantees granted to the Ecobank Group since 2018 to €125m.
Nigeria Deposit Insurance Corporation (NDIC) has advised Nigerians to seek clarification from the corporation on status of suspicious financial institutions and report banking-related infractions to secure their funds.
Thompson Sunday, managing director/chief executive, NDIC, gave the advice on Tuesday at an event to mark NDIC special day at the ongoing Lagos International Trade Fair.
Sunday who was represented by Wale Sule, director of the Claims Resolution Department, said one of the mandates of NDIC is banking supervision.
He added that, the corporation is available to handle any bank customer’s complaints unresolved by banks within two week.
He explained that the mandate of NDIC is to guarantee depositors funds, supervise banks, resolve distressed insured institutions and liquidate failed banks.
He also explained the collaborative role with the Central Bank of Nigeria (CBN) to maintain banking sector stability, enforce regulatory compliance and ensure effective oversight taking institutions
The NDIC boss urged depositors to escalate unresolved complaints to NDIC through its official channels, social media handles, help lines, website, email, offices nationwide, among others.
e also advised the public to watch out for NDIC protection logo towards escaping gimmicks of wonder banks.
“A Wonder Bank cannot have a logo that says protected by NDIC,” he said.
He said if any bank is soliciting for funds, customers should walk into any NDIC offices to complain or verify their authenticity through all NDIC official help lines.
He said the theme of the 2025 fair: “Connecting Business, Creating Value”aligned closely with the public policy objectives and mandate of NDIC.
Sunday said that the fair provided a valuable platform to showcase the ingenuity of the nation’s entrepreneurs, capacity of manufacturers and the creativity of small, medium, and micro enterprises (SMEs).
He added that the fair also highlighted the critical role of the organisation’s financial system as a vehicle that connects economic activities for sustainability and growth
Mastercard has launched a new suite of premium lifestyle benefits dubbed The Mastercard Collection, aimed at enhancing the experiences of its high-tier cardholders across Eastern Europe, the Middle East, and Africa (EEMEA).
The offering, which complements existing bank-issued rewards, is available to holders of World, World Elite, and the newly introduced World Legend and World Legend Exclusive Mastercards — the company’s most exclusive credit card tiers to date.
Speaking on the launch, Prakriti Singh, Executive Vice President, Core Payments, EEMEA, Mastercard, said the initiative is designed to transform everyday transactions into memorable experiences.
“Consumers today don’t just want access to benefits; they want moments that make memories,” Singh said. “Through this launch we are turning everyday payments into extraordinary possibilities.”
The Mastercard Collection includes priority access to curated dining, entertainment, and travel experiences in over 45 destinations. Cardholders can enjoy exclusive menus at top restaurants such as Aelia, Andaliman, and La Dame de Pic in Dubai and Istanbul, among others.
In partnership with Live Nation, Mastercard is also offering pre-sale tickets, premium seating, and VIP access to over 75 concerts annually in the region and more than 2,500 events globally.
Travel benefits include complimentary access to 1,350 airport lounges worldwide, discounts on terminal services, and fast-track security lanes at over 30 airports — including an exclusive lane at Istanbul Airport.
Ahmed Abdel-Karim Hussein, Executive Vice President, Integrated Marketing and Communications, EEMEA, Mastercard, said the initiative reflects the company’s commitment to connecting people to their passions.
“Our research shows that nearly 75 per cent of cardholders feel their best when pursuing passions like culinary exploration and cultural immersion,” Hussein said.
The World Legend Mastercard is currently available to banks in the region and will be rolled out to cardholders in the UAE, Saudi Arabia, and Türkiye in Q4 2025.
Eligible cardholders can access the benefits via priceless.com/themastercardcollection.
NITDA DG Tasks Youths to Drive Africa’s Digital Transformation
Girls Slug it Out for N5m Prize in Glo Innov8 STEM Finale
IHS Holding Chairman, Sam Darwish Credits Nigeria for Strong Q3’25 Earnings
Tecom, Huawei to Champion Smart Connectivity and Digital Innovation in Abuja
Group Opens Call for Session Proposals for the 2026 Digital Rights and Inclusion Forum
ChatGPT Go Hits African Shores
Research ICT Africa Develops AI Framework for Africa
Lagos Deploys Drones to Monitor, Manage Traffic
Cybersecurity Firm Shares a Guide to Deleting your Digital Footprint from the Internet
Deepfakes: The Next Human Vulnerability for Businesses?
Telecom3 days agoFG Launches Galaxy Backbone’s 1Gov ECM Platform, Marks Major Milestone in Nigeria’s Digital Transformation Journey
E-Financial3 days agoStandard Chartered to Close Accounts Below N7.5m AUM, Shuts Branches Ahead of 2026 Restructuring
E-Financial3 days agoNigeria Records First Successful Transaction on National Payment Stack
Telecom3 days agoEquinix Unveils Plans for New $22m Data Center in Lagos
E-Business3 days agoFirm Warns of Blackmail from Alleged “Hackers”, “Law Enforcement” and “Hitmen”
Telecom3 days agoALTON Seeks Clear Rules to Strengthen Nigeria’s Digital Economy
News3 days agoKano Implements Software Payroll System to Eliminate Leakages
General News3 days agoNigeria Connects National Electricity Grid to West Africa Power Pool