BANK SHAREHOLDERS' FUNDS HIT ₦27.77 TRILLION, BUT LOAN-TO-DEPOSIT RATIOS FALLING AS DEPOSITS OUTPACE LENDING

E-banking revenue crosses ₦685bn; system liquidity up 1,253% since recapitalisation began; Fitch flags lending acceleration ahead

Nigerian banks have rebuilt their capital foundations to the strongest level in the sector's history, with combined shareholders' funds across the country's tier-one institutions reaching ₦27.77 trillion in 2025, a ₦5.8 trillion increase from 2024, as the CBN's recapitalisation programme concluded in March 2026.

The expansion was driven primarily by the recapitalisation exercise, which required Nigerian banks to raise a total of ₦4.65 trillion in fresh capital over 24 months. Alongside the capital build-up, e-banking revenues across the five biggest banks collectively rose to ₦685.5 billion from ₦628.4 billion, reflecting accelerating adoption of digital banking channels as a primary source of non-interest income.

Banking system liquidity reached ₦4.15 trillion as of April 2026, representing a 1,253 per cent increase compared to ₦306.54 billion in April 2023 when the recapitalisation programme was announced. Combined customer deposits across FUGAZ grew 23 per cent to ₦114 trillion from ₦93 trillion in 2024, driven by sustained depositor confidence.

However, the data also reveals a widening disconnect between available capital and actual credit deployment. Loan-to-deposit ratios fell across all five banks. Access Holdings' ratio declined to 38.6 per cent from 50.7 per cent, while GTCO dropped to 25 per cent from 27.8 per cent. Deposit growth has significantly outpaced loan expansion, indicating a more conservative lending posture despite improved capital positions.

Fitch Ratings projects this will reverse in 2026, forecasting nominal loan growth above 20 per cent as stronger capital positions provide banks with the headroom to extend credit more aggressively to the private sector.