. Nigeria’s largest banks collectively set aside 1.96 trillion Naira in loan loss provisions to prepare for potential loan defaults in the first nine months of 2025.
This represents a significant increase (49%) compared to approximately 1.32 trillion Naira in provisions during the same period of 2024.
Notably, this increase in provisions comes as the Central Bank of Nigeria (CBN) begins to phase out relief measures implemented during the pandemic. These regulatory relief measures previously allowed banks to restructure their risk exposures and defer the classification of non-performing loans. Central Bank of Nigeria The CBN has called for “enhanced regulatory support” for banks that continue to benefit from these relief measures.
Under the revised framework, banks continuing to enjoy relief measures will be prohibited from paying dividends, bonuses to executives, and expanding overseas operations, while banks that no longer meet the requirements… will have their minimum requirements phased out. Before the full withdrawal of bailout measures in March 2026, the Central Bank of Nigeria (CBN) announced that at least eight banks had met the criteria related to the extension measures, indicating an improved regulatory attitude. Against this backdrop, Nairametrics analyzed the financial reports of Nigeria’s largest listed banks to identify the banks with the highest loan loss reserves as of 2025. Below is a ranking of the eight banks with the highest loan loss reserves in the third quarter of 2025.
