Banks gross N26trn in 2025 in midst of 35% rising rate of poverty in Nigeria

By Josiah Nkemakolam

Nigeria’s banking industry recorded combined gross earnings of over N26 trillion in the 2025 financial year, underscoring the resilience and profitability of the sector despite worsening economic hardship across the country.

The strong earnings posted by the country’s leading financial institutions came at a time when poverty levels continued to rise sharply, with recent reports by PricewaterhouseCoopers (PwC) and the World Bank projecting that more Nigerians will fall below the poverty line in 2026.

According to the banks’ audited financial statements for the year ended December 31, 2025, top lenders benefited from high interest rates, increased digital transactions, foreign exchange gains, and expansion in lending activities.

The gross earnings of the major banks climbed significantly year-on-year, reflecting the impact of inflation, higher transaction volumes, and increased banking penetration.

Leading the pack was Access Holdings Plc, which posted gross earnings of N5.52 trillion in 2025, representing a 13.35 per cent increase from N4.87 trillion recorded in 2024.

Ecobank Group followed with gross earnings of N4.88 trillion, consolidating its position as one of Africa’s largest banking groups.

Zenith Bank Plc reported gross earnings of N4.07 trillion, up by 6.54 per cent from N3.82 trillion declared in 2024.

Similarly, First HoldCo Plc recorded N3.37 trillion in gross earnings, reflecting a 4.98 per cent increase compared to N3.21 trillion achieved in the previous year.

United Bank for Africa Plc posted N3.09 trillion in gross earnings for 2025, representing a 4.04 per cent rise from N2.97 trillion recorded in 2024.

For Guaranty Trust Holding Company Plc, gross earnings rose marginally to N2.15 trillion from N2.11 trillion in 2024, indicating a growth rate of 1.90 per cent.

Fidelity Bank Plc emerged as one of the fastest-growing lenders during the period, with gross earnings jumping to N1.52 trillion from N1.04 trillion in 2024, representing an impressive growth of 46.15 per cent.

Sterling Financial Holdings Company Plc posted gross earnings of N486.8 billion in the year under review.

Wema Bank Plc also recorded strong growth as gross earnings rose to N660.59 billion from N432.34 billion in 2024, representing a 52.79 per cent increase.

Meanwhile, Unity Bank Plc posted gross earnings of N59.36 billion.

Combined, the banks generated over N25.8 trillion in gross earnings in 2025, highlighting the enormous profitability of the financial sector despite the harsh economic environment facing many Nigerians.

Economic analysts said the impressive earnings reflect how banks have continued to benefit from elevated interest rates and inflationary trends that expanded income from loans, treasury operations, commissions, and digital banking services.

However, the strong performance of the banking industry sharply contrasts with the deteriorating living conditions of ordinary Nigerians.

A recent report by PricewaterhouseCoopers warned that poverty levels in Nigeria could worsen significantly by 2026, with as many as 141 million Nigerians projected to live below the poverty line.

The report, contained in PwC’s Nigeria Economic Outlook 2026 titled, Turning Macroeconomic Stability into Sustainable Growth, noted that recent economic reforms introduced by the federal government had yet to improve household welfare.

According to the report, rising food prices, high transportation costs, exchange rate pressures, and weak income growth are expected to keep millions of Nigerians trapped in poverty despite a gradual decline in inflation.

PwC projected that Nigeria’s poverty rate could rise to 62 per cent in 2026, indicating that more than half of the country’s population may struggle to meet basic needs.

The World Bank also expressed similar concerns in its latest Nigeria Development Update.

The institution estimated that the number of Nigerians living in poverty increased from about 81 million in 2019 to approximately 139 million in 2025.

The World Bank further projected that the poverty rate could peak at 62 per cent in 2026 before dropping slightly in 2027.

The reports painted a troubling picture of widening inequality in the country, where corporate profits continue to rise while household purchasing power weakens.

Analysts said the situation raises concerns about the disconnect between macroeconomic growth indicators and the actual living conditions of citizens.

A Lagos-based economist, Fred Nwaogazi, said the rising earnings of banks amid worsening poverty reflect the structural imbalance within the Nigerian economy.

“The banking sector is thriving because inflation and high interest rates naturally expand financial sector revenues.

Unfortunately, ordinary Nigerians are not experiencing the same growth in income or welfare. What we are seeing is a widening gap between corporate profitability and citizens’ living conditions,” he said.

Nigeria’s economic reforms under the administration of Bola Ahmed Tinubu, including the removal of petrol subsidy, electricity tariff adjustments, and foreign exchange liberalisation, have significantly reshaped the economy over the last three years.

While the reforms have improved government revenues and reduced market distortions, they have also triggered severe inflationary pressures.

Food prices have remained persistently high, transportation costs have surged, and electricity tariffs have increased sharply, placing enormous pressure on households and businesses.

Data from the National Bureau of Statistics showed that food inflation remained one of the biggest drivers of economic hardship in 2025, especially among low-income earners.

Economic experts warned that unless urgent measures are taken to create jobs, improve productivity, strengthen infrastructure, and expand social protection programmes, poverty could deepen further.

The country’s infrastructure deficit also continues to affect economic productivity.

Poor road networks, rising insecurity, and unstable electricity supply remain major challenges limiting industrial growth and agricultural productivity.

In many rural communities, insecurity has disrupted farming activities, contributing to food shortages and higher market prices.

Despite these challenges, banks have continued to expand aggressively across digital banking, agency banking, and regional operations, enabling them to maintain strong earnings growth.

Industry analysts believe the sector may continue to post robust results in the near term, especially if interest rates remain elevated and transaction volumes continue to grow.

However, concerns persist over whether the strong financial sector performance will translate into broader economic benefits for the population.

Many experts argue that sustainable economic growth cannot be achieved when a large percentage of citizens remain trapped in poverty.

According to them, the government must focus more attention on policies that directly improve household incomes, support small businesses, reduce unemployment, and lower the cost of living.

The growing contrast between booming bank earnings and rising poverty levels has therefore become one of the defining features of Nigeria’s economic landscape in 2025.

While investors celebrate record-breaking financial results from lenders, millions of Nigerians continue to battle rising living costs, weak purchasing power, and economic uncertainty.

With political activities expected to intensify ahead of future elections, observers say both federal and state governments must urgently prioritise poverty reduction and economic inclusion to prevent further social and economic pressure on vulnerable households.