Nigeria’s Top Banks Earn N4.8 Trillion from Fixed-Income Investments in 9 Months
Nigeria’s biggest lenders — First HoldCo, UBA, GTCO, Access Corporation, and Zenith Bank, collectively known as FUGAZ — have raked in a massive N4.8 trillion in interest income from fixed-income investments within the first nine months of 2025. This performance highlights the sector’s growing appetite for low-risk, high-yield government securities amid a volatile economic environment.
According to financial statements filed with the Nigerian Exchange (NGX), the group’s combined investment in treasury bills and government bonds surged to N49.15 trillion, a 16.5% jump from N42.2 trillion recorded at the end of 2024. Access Corporation led the pack with N15.25 trillion invested, followed by UBA (N13.59 trillion), Zenith Bank (N9.05 trillion), First HoldCo (N6.35 trillion), and GTCO (N4.91 trillion). Their respective interest earnings were N1.3 trillion, N1.14 trillion, N1.03 trillion, N720.15 billion, and N570.23 billion.
Analysts say the trend shows that Nigerian banks are increasingly shifting toward safer government-backed assets and Central Bank of Nigeria (CBN) placements instead of riskier private-sector lending. Despite the impressive returns, most FUGAZ banks maintained a conservative lending approach, growing their loans and advances at a slower pace than investments in securities. The banks’ combined loan book rose by just 7.3% to N42.26 trillion, compared to the sharper 16.5% increase in securities investments.
This shift reflects a strategic preference for stability in uncertain times. While Access and GTCO recorded double-digit loan growth, Zenith Bank and others slowed down on lending activities, underscoring the banking sector’s cautious stance toward credit risk. By prioritizing fixed-income assets, these lenders secured predictable earnings streams amid fluctuating interest rates and foreign exchange instability.
Meanwhile, a major regulatory shake-up could reshape Nigeria’s fixed-income landscape. The CBN plans to migrate all fixed-income trading and settlement from the FMDQ Securities Exchange to its Real-Time Gross Settlement (RTGS) and Scripless Securities Settlement System (S4). Analysts say this move consolidates the apex bank’s control over the bond market — a development that could streamline processes or alter profitability for banks like FUGAZ, depending on how the transition unfolds.
source: nairametrics