Bank
How Nigerian Banks Built a N219 Trillion Asset Empire on Depositors’ Funds
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]
ZENITH BANK SIGNALS STRONG FULL-YEAR OUTLOOK WITH N51.3 BILLION INTERIM DIVIDEND PAYOUT
Zenith Bank Plc, on Friday, October 10, 2025, made good on its promise as it paid a total interim dividend of N51.3 billion to its shareholders for the Half Year (H1) 2025, at N1.25 per share. This significant payout represents an increase of over 60% from the N31.4 billion paid in H1 2024, demonstrating the bank’s commitment and enhanced capacity to continually generate value for its shareholders amidst a challenging macroeconomic environment.
The dividend payment follows the bank’s audited financial results for the half year ended June 30, 2025, released to the Nigerian Exchange (NGX) in September 2025, which showcased a robust financial position and strong growth trajectory.
Commenting on the dividend payout, the Group Managing Director/CEO, Dame Dr. Adaora Umeoji, OON, said:
> “We are pleased to have paid this significant interim dividend to our valued shareholders. Our half-year results underscore our resilience and commitment to our stakeholders. Based on the momentum achieved in H1, we are confident in our full-year outlook and expect to exceed shareholders’ expectations by year-end.”
The substantial dividend payout reflects the bank’s exceptional underlying performance, as it recorded a robust 20% year-on-year increase in gross earnings, rising from N2.1 trillion to N2.5 trillion in H1 2025. Interest income drove this performance with an impressive 60% growth, climbing from N1.1 trillion to N1.8 trillion. The bank achieved this increase through the strategic repricing of risk assets and effective treasury management.
The bank’s total assets also expanded to N31 trillion in June 2025, representing steady growth from N30 trillion in December 2024, underpinned by a robust and well-structured balance sheet. Customer confidence remained strong, with deposits growing by 7%, from N22 trillion to N23 trillion in June 2025.
Zenith Bank’s shareholders can be assured of the bank’s continued focus on delivering exceptional value and growth, driven by its strong financial fundamentals and strategic initiatives.
The bank’s consistent track record of excellent performance has continued to earn it numerous awards, including recognition as the Number One Bank in Nigeria by Tier-1 Capital for the sixteenth consecutive year in the 2025 Top 1000 World Banks Ranking published by The Banker, and as “Nigeria’s Best Bank” at the Euromoney Awards for Excellence 2025.
The bank was also awarded Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020, 2022, and 2024; Best Bank in Nigeria from 2020 to 2022, 2024, and 2025 in the Global Finance World’s Best Banks Awards; Best Bank for Digital Solutions in Nigeria at the Euromoney Awards 2023; and was listed among the World Finance Top 100 Global Companies in 2023.
Further recognitions include Best Commercial Bank, Nigeria for five consecutive years from 2021 to 2025 in the World Finance Banking Awards, and Most Sustainable Bank, Nigeria in the International Banker 2023 and 2024 Banking Awards. Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards for four consecutive years from 2022 to 2025, and “Best in Corporate Governance – Financial Services, Africa” for four consecutive years from 2020 to 2023 by Ethical Boardroom.
The bank’s commitment to excellence also saw it named the Most Valuable Banking Brand in Nigeria in The Banker’s Top 500 Banking Brands for 2020 and 2021, Bank of the Year (2023–2025) at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, and Retail Bank of the Year for three consecutive years from 2020 to 2022 and 2024 to 2025 at the BAFI Awards. The bank also received the accolades of Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards.
Zenith Bank was further named Most Responsible Organisation in Africa, Best Company in Transparency and Reporting, and Best Company in Gender Equality and Women Empowerment at the SERAS CSR Awards Africa 2024; Bank of the Year 2024 by ThisDay Newspaper; Bank of the Year 2024 by New Telegraph Newspaper; and Best in MSME Trade Finance 2023 by Nairametrics. The bank’s Hybrid Offer was also adjudged “Rights Issue/Public Offer of the Year” at the Nairametrics Capital Market Choice Awards 2025.
Union Bank Strengthens Media Ties at Informal Mixer Event
Lagos, Nigeria – Union Bank of Nigeria recently hosted an informal and engaging meet-and-greet session with leading media professionals at The Stallion Plaza, its headquarters in Marina, Lagos.
The event, held at SpaceNXT, the Bank’s purpose-designed co-creation hub for innovators and creators, was conceived as a relaxed platform to foster personal connections and deepen mutual understanding between the Bank and media partners.
Rather than a formal media briefing, the gathering offered a convivial atmosphere for open conversation, reinforcing Union Bank’s recognition of the media’s essential role in shaping public discourse and amplifying the Bank’s mission.
In attendance were senior members of Union Bank’s leadership team, including Taiwo Shote, Executive Director, Corporate Banking, Lagos and West, Olufunmilola Aluko, Chief Brand and Marketing Officer, and Tosin Ibikunle, Head of Strategy and Planning. Olufunmilola and Tosin reaffirmed the Bank’s commitment to transparent and collaborative engagement with the press, while underscoring Union Bank’s strong operational footing and readiness to meet all regulatory obligations.
Speaking at the event, Mrs Olufunmilola Aluko, Chief Brand and Marketing Officer, said:
“This event is simply about people. Union Bank has been around for 108 years, and we’ve seen it all – from telegram banking to digital wallets; from handwritten ledgers to AI-driven analytics. But through all that change, one constant has remained: the media.
We wanted to create a space that is unhurried and human, where we can meet without the weight of deadlines or the formality of press statements, because behind those exchanges are real people who share a deep commitment to storytelling, to truth, and to impact. So today, we wanted this session to simply be about reconnecting; banker to journalist, human to human.”
Echoing this spirit of partnership as the Bank looks ahead, Mr Tosin Ibikunle, Head of Strategy and Planning, added:
“Union Bank has diligently enhanced its systems and service experience in preparation for the next phase of growth. As we roll out new initiatives, we look forward to partnering with the media to tell our story with clarity, accuracy, and impact.”
The event also featured a tour of Stallion Plaza and a networking session, reflecting the Bank’s intention to create a warm, human connection beyond the usual formalities of corporate communication.
Union Bank remains steadfast in its commitment to building trust through open dialogue and meaningful partnerships with the media and all stakeholders, as it continues to serve customers and contribute positively to Nigeria’s economic landscape.
Union Bank Champions Employee Wellness with Stay Recharged Health Walk
Lagos, Nigeria – Union Bank of Nigeria held its first-ever Stay Recharged Health Walk, a dynamic event that affirmed the Bank’s steadfast commitment to employee well-being and sustainable workplace development.
The walk kicked off at the Stallion Plaza, Union Bank’s Head Office in Marina. It concluded at the Bank’s Sports Complex, The Stable, on Bode Thomas Street, Surulere, tracing an energising 7.5km route through Lagos’ vibrant streets. The overwhelming participation and enthusiasm from employees from diverse departments and locations made it a celebration of physical fitness, mental health, and the power of community spirit.
Stay Recharged is a featured event drawn from a cornerstone of Union Bank’s employee value proposition: employee wellness, thoughtfully crafted to foster a culture where health, happiness, and productivity flourish. The initiative responds directly to the urgent need for purposeful wellness programmes that nurture both physical and mental health at work. It reflects the Bank’s recognition that employee wellbeing is fundamental to sustained productivity, engagement, and organisational excellence.
Omayuli Wale-Ajayi, Chief Talent Officer, emphasised the significance of this milestone event:
“At Union Bank, well-being is not an afterthought; it is part of how we work. Our inaugural Stay Recharged Health Walk reflects our commitment to building a culture where our people are energised, supported, and thriving. When we take care of ourselves, we build stronger teams and stronger institutions.”
The Stay Recharged Health Walk aligns with the United Nations Sustainable Development Goals, specifically SDG 3: Good Health and Well-being and SDG 8: Decent Work and Economic Growth. This initiative reflects Union Bank’s commitment to fostering a workplace culture that prioritises employee wellness, supports decent and productive work, and contributes to long-term organisational sustainability.
By investing in these wellness experiences, Union Bank not only strengthens its internal community but also reinforces its reputation as an employer of choice.
Union Bank remains dedicated to developing innovative, health-focused programmes that inspire employees to adopt healthier lifestyles, supporting long-term growth for both individuals and the organisation.
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