Nigeria’s largest banks set aside a combined N1.96 trillion in the first nine months of 2025 as impairment charges to cover potential loan losses.
This represents a sharp increase from about N1.32 trillion (up 49%) in the same period of 2024.
Crucially, this surge in provisioning comes as the Central Bank of Nigeria (CBN) begins unwinding its pandemic-era forbearance measures, regulatory relief that previously allowed banks to restructure exposures and delay the classification of non-performing loans.
The apex bank has since flagged banks still under forbearance for “close supervisory engagement.”
Under the revised framework, banks that continue to benefit from forbearance are restricted from paying dividends, issuing executive bonuses, or expanding offshore operations, while those that have met the minimum requirements are transitioning out.
Ahead of the full unwind in March 2026, the CBN disclosed that at least eight banks have already met the requisite forbearance-related standards, signaling an improving regulatory stance.
Against this backdrop, Nairametrics reviewed the financial statements of Nigeria’s top listed banks to determine those with the largest impairment charges so far in 2025.
Below is the ranking of the eight banks with the biggest loan-loss provisions as of Q3 2025.
Wema Bank’s impairment stood at N11.0 billion, slightly below the N11.68 billion reported last year (–6%). Loan growth was strong (+30% YoY), yet risk assets remained under control.
Most of Wema Bank’s impairment occurred in the third quarter of 2025, estimated at about N10 billion.
The bank also recorded recoveries of N4.29 billion in the first nine months of 2025, which helped reduce its net provisioning to N11 billion, one of the lowest in the industry.
