Zenith Bank, GTCO, and FirstHoldCo collectively earned N2.85 trillion from Treasury bills in 2025, reflecting a sharp 43.03% increase from N1.99 trillion in 2024. This surge highlights a growing reliance on short-term government debt instruments as banks adjust their investment strategies in response to evolving market conditions. Data from the Nairametrics Research Team, based on the banks’ latest financial statements, underscores Treasury bills as a key contributor to the sector’s income growth.
Alongside Treasury bills, interest from loans and advances also rose, with a 22.68% year-on-year growth. This combined performance signals an overall upward trajectory in banks’ interest income. By leveraging low-risk Treasury bills while sustaining lending activities, these banks appear to be strategically balancing returns and risk in an uncertain economic environment.
Zenith Bank recorded the most aggressive Treasury bills growth, with income jumping 94.76% to N1.13 trillion, while loans and advances contributed N1.82 trillion. For GTCO, Treasury bills interest rose 34.85% to N758.74 billion, slightly exceeding loans income, reflecting a balanced portfolio. FirstHoldCo posted a 13.16% increase in Treasury bills interest to N962.39 billion, but loans remained its primary income source, contributing 67.53% of total interest.
The data suggests a clear trend of income diversification among Nigeria’s leading banks. Zenith Bank is positioning itself strongly in government securities, capitalizing on safer, liquid assets. GTCO maintains a balanced approach between lending and Treasury bills, while FirstHoldCo remains loan-focused but is gradually increasing its exposure to government debt as a risk hedge. This strategic mix helps the banks optimize returns while managing lending risks.
Overall, the growth in Treasury bills income underscores a shift in how Nigerian banks generate revenue. While loans and advances remain dominant, Treasury bills provide a low-risk, high-yield buffer against market volatility. With Zenith, GTCO, and FirstHoldCo showing varying degrees of reliance on government securities, investors and customers can expect a mix of stability and growth from these banks in the evolving economic landscape.
source: nairametrics