Access, Zenith, GT Bank, Six Other Nigerian Banks Reveal How Much Nigerians Borrowed and Refuse to Pay

Access, Zenith, GT Bank, Six Other Nigerian Banks Reveal How Much Nigerians Borrowed and Refuse to Pay

  • Nigerian banks have detailed the value of loans collected from them that have passed the repayment date
  • The Loans are considered non-performing by the bank because the interest and principal amount are unpaid
  • Access, Zenith, and Guaranty Trust Bank are among the nine commercial banks captured in the report

As of the end of December 2021, the non-performing loan portfolio of ten Nigerian banks had grown to N814.08 billion.

The stock of nonperforming loans as of 2021 represents a 3.16 per cent increase over the N789.14 billion it stood at the end of 2020.

The figure is based on the financials of nine Nigerian banks listed on the stock market.

Access, Zenith, GT Bank, Nigerian banks
Nigerian bank bad loans is increasing Credit: HDSDS

The nine banks are Access Holdings Plc, Zenith Bank Plc, Wema Bank Plc, FCMB Group, Union Bank of Nigeria Plc and Stanbic IBTC Holdings Plc.

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Others are Guaranty Trust Holding Plc, United Bank for Africa Plc, and Ecobank Nigeria.

How much do customers owe banks?

A breakdown showed that Access Holdings, Zenith Bank and GTCO reported the top three highest NPL by value among the nine banks, while Stanbic IBTC Holdings reported the lowest.

Access Bank in 2021 reported N181.5bn NPL by value, representing an increase of 4.3 per cent from the N161.2bn it recorded in 2020, while Zenith Bank’s NPL hit N146.8bn in 2021 from N125.2bn recorded in 2020, an increase of 17.3 per cent.

Wema Bank, in 2021, reported N21.3bn NPL, an increase of 19.3 per cent from N19.3bn in 2020, while FCMB Group’s NPL rose to N45.93bn, representing a 61 per cent increase from N28.57bn it reported in 2020.

Others are Union Bank of Nigeria with N38.66bn NPL in 2021 from N29.45bn reported in 2020, as Stanbic IBTC Holdings reported a 23.4 per cent drop in its NPL to N20.3bn in 2021 from N25.5bn in 2020.

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Furthermore, GTCO’s NPL value rose by 2.3 per cent to N113.94bn in 2021 from N111.43bn reported in 2020, while UBA closed 2021 with N96.5bn NPL value from N120.08bn reported in 2020, indicating a significant reduction in its NPL.

In addition, ETI Nigeria reported N149.15bn NPL by value in 2021 from N167.41bn in 2020, a decline of 11 per cent.

Zenith, Gtbank lead list of Nigeria's most valuable Banks in January

Meanwhile in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian banks closed at N194.5 billion.

In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.

Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.

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