Nigeria’s top-tier banks have collectively expanded their balance sheets to new heights, with total assets crossing the ₦200 trillion threshold for the first time. This significant growth underscores the sector’s resilience and expanding financial strength in 2025, amid signs of gradual economic recovery.
Recent official data verified by the Central Bank of Nigeria (CBN) showed that the combined assets of the six largest banks rose from ₦186.83 trillion in December 2024 to ₦206.90 trillion by the end of the third quarter of 2025 — a 10.7% increase amounting to about ₦20.1 trillion in new asset growth.
The six “tier-1” banks — United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Zenith Bank, Access Holdings, Ecobank Transnational Incorporated (ETI), and First Bank HoldCo Plc — control more than 75% of the nation’s total banking assets. Their performance serves as a barometer for the broader financial system and, by extension, the overall economy.
Deposit Growth Fuels Asset Expansion
The sharp increase in assets was driven largely by rising customer deposits, which climbed by 17% from ₦124.81 trillion in December 2024 to ₦146.01 trillion by September 2025. This represents a nominal increase of about ₦21.2 trillion, reflecting strong liquidity inflows across the banking sector.
Access Holdings led the pack with an impressive expansion from ₦41.50 trillion to ₦52.20 trillion in total assets. Ecobank followed, growing its balance sheet from ₦43.30 trillion to ₦47.98 trillion. UBA’s total assets increased to ₦32.49 trillion from ₦30.32 trillion, while Zenith Bank rose to ₦31.18 trillion from ₦30.38 trillion. GTCO’s total assets stood at ₦16.66 trillion, up from ₦14.80 trillion. The only outlier was First HoldCo, which saw a marginal dip to ₦26.40 trillion from ₦26.52 trillion.
Analysts Link Growth to Economic Recovery
Economic experts have interpreted the trend as a positive signal for Nigeria’s economic outlook. Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the growth as a reflection of increasing economic activity and improving fiscal health.
“This is perhaps an indication of the progressive recovery of the economy,” Yusuf explained. “We know that as economic activities expand, so do financial transactions. The growth in banks’ total assets shows that both financial and economic activities are gaining traction.”
He added that stronger government revenues and spending — which flow largely through the banking system — also contributed to the surge in assets. However, Yusuf stressed that this financial growth must translate into real economic benefits.
“The linkage between the banking system and the real sector, particularly small and medium-sized enterprises, remains weak,” he noted. “A banking system that is overly risk-averse cannot effectively drive economic and entrepreneurial development. Banks need to take more calculated risks to support SMEs and the productive sectors.”
Profitability and Asset Quality Still Key Concerns
Similarly, Managing Director of HighCap Securities, Mr. David Adonri, welcomed the asset expansion as a “good development,” but emphasized that the quality and profitability of those assets matter just as much as their size.
“With yields on government securities declining and fewer forex-related windfalls, banks are no longer enjoying extraordinary income,” Adonri said. “While larger balance sheets are good for the economy, investors are more focused on returns — and declining earnings per share could be a concern.”
Outlook
The expansion of the top banks’ balance sheets points to renewed confidence in Nigeria’s financial system, supported by deposit growth and broader economic recovery. Yet, analysts agree that for the industry’s progress to have lasting impact, banks must deepen their engagement with the real sector — supporting businesses that generate jobs and long-term economic value.