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.
UBA recorded a N56.9 billion impairment charge, a significant reduction from N123.5 billion (–54% YoY), driven by recoveries and improved credit-risk models across its African network.
UBA’s reduced impairment charge was aided by a massive recovery of N50.4 billion reported in the first 9 months of the year. Included in this recovery was N19 billion achieved in the third quarter of 2025.
According to notes in the company accounts shows the bank incurred credit-loss allowances of N84.97 billion, write-offs of N7.3 billion, and recoveries of N50.4 billion, indicating proactive loan-book management and better collateral recovery.
According to the bank’s commentary per its latest filing, “Shareholders’ funds expanded by 26% to N4.3 trillion, underscoring the continued confidence of investors in the Group’s strategy, while capital adequacy and liquidity ratios remain well above regulatory thresholds and provide significant buffers to support continued growth,”
