Nigeria’s tier 1 banks get bigger, braver, and more dominant – Proshare Report

Nigeria’s financial intelligence platform, Proshare, has released its 2025 Tier 1 Banks Report, painting a bold picture of the country’s evolving banking landscape under the theme: “Getting Bigger, Braver, and Dominant – The Class of 2025.”

According to the report, the rapid expansion and recapitalisation of Nigeria’s top banks position them to play a pivotal role in transforming the economy into a $1 trillion powerhouse by 2030, in line with the Federal Government’s growth ambitions. But to do this, Proshare says these bigger banks must also become more imaginative, agile, and flexible.

The report recommends that banks begin to shift their focus from Nigeria’s 46 traditional economic sectors to 14 newly defined “sub-economies” to better align with the country’s development priorities. Among the most promising sub-sectors identified are the Marine and Blue Economy, Entertainment and Arts, Hospitality and Real Estate, and Mineral Mining and Energy.

Tier 1 Rankings: Who’s on Top?

Using its proprietary Proshare Bank Strength Index (PBSI), which aggregates key performance indicators through scientific and statistical models, Proshare ranked the top-tier banks in Nigeria. The PBSI criteria include:

Capital adequacy and size, particularly in light of ongoing recapitalisation;

Asset quality and growth, with an emphasis on non-performing loans (NPLs);

Digital transformation, measured by e-banking revenue share;

Profitability and operational efficiency (e.g., cost-to-income ratio and net interest margins);

Corporate governance and regulatory compliance.

The 2025 rankings place ETI, ACCESSCORP, FIRSTHOLDCO, ZENITH BANK, UBA, and GTCO at the top of the Tier 1 ladder. ETI, in particular, surged to the top—thanks to a 67.11% growth in assets, largely driven by strong performance in francophone West Africa and select anglophone markets outside Nigeria.

Recapitalisation: Meeting the CBN Mandate

All Tier 1 banks listed in the report are internationally licensed and are on course to meet or have already surpassed the Central Bank of Nigeria’s (CBN) new capital requirements—₦200 billion for national banks and ₦500 billion for international license holders.

Interestingly, the report also highlights FIDELITY Bank as a “Tier 1-in-waiting.” Despite a recent legal setback following a Supreme Court judgment, Proshare believes the bank remains on track to join the top league by the end of the 2025 financial year. The report notes that a well-managed cash flow strategy could help Fidelity Bank weather the temporary storm without jeopardising liquidity or operations.

Trends Shaping the Future of Nigerian Banking

Proshare’s analysts emphasise that raw size alone will not determine the winners in the next chapter of Nigerian banking. Instead, a combination of behavioural insight, digital innovation, and collaborative strategy will be key. The report outlines several transformational trends:

Customer-Centric Innovation: Understanding the behavioural patterns of both retail and corporate customers will drive personalised service delivery. Artificial intelligence (AI) is expected to become a critical tool in designing financial products tailored to individual needs.

Flexibility Over Size: The ability to remain nimble and responsive to changing customer expectations will be a defining trait. “Elephants must learn to dance,” the report notes, urging even the largest institutions to maintain operational agility.

Fintech Co-opetition: Rather than compete head-on, banks and fintechs must cooperate where beneficial. While fintechs offer customer-friendly front-end platforms, banks bring robust back-end infrastructure to the table. This synergy could redefine who owns the customer relationship in the long run—a debate the report describes as still unresolved.

AI and the End of Traditional Banking: The integration of AI is set to fundamentally alter banking processes. From loan approvals based on real-time transaction histories to automated credit risk assessments, the digitisation of financial services could eliminate human biases and accelerate service delivery.

Over the next five years, Nigeria’s Tier 1 banks are expected to double down on digital investment, competitive positioning, and innovation. As traditional banking fades into the background, the institutions that thrive will be those that evolve into seamless financial intermediaries—connecting diverse customer needs with financial opportunities in real-time.

In Proshare’s view, the Nigerian banking sector is no longer merely growing—it is transforming. And the Class of 2025, armed with capital, technology, and ambition, is leading that charge.