In 2024, nine big Nigerian banks made a total of N14.26 trillion from interest charged to customers. This is more than double what they made in 2023, which was N6.49 trillion. This big jump came mostly because of higher interest rates set by the Central Bank of Nigeria (CBN).
These banks include Access Holdings, Zenith Bank, First HoldCo (owner of FirstBank), GTCO, UBA, FCMB, Fidelity Bank, Stanbic IBTC, and Wema Bank. Among them, Access Holdings earned the most interest income—N3.11 trillion—followed by Zenith Bank with N2.72 trillion, and First HoldCo with N2.39 trillion.
Some of this interest came from bad loans, meaning loans that customers are struggling to pay back. For example, Zenith Bank and UBA reported billions of naira in interest income from such loans.
At the same time, manufacturers are finding it very hard to do business. The president of the Manufacturers Association of Nigeria said companies spent about N1.3 trillion on loan interest alone, plus another N1.2 trillion on energy in 2024. High funding costs and energy prices are making it tough for the real sector to grow.
The Central Bank raised interest rates to 27.50% by the end of 2024 to fight inflation, which hit 34.80% in December. But many people now believe that these high rates are hurting businesses more than helping the economy.
Experts are asking the Central Bank to stop increasing rates, so businesses can survive and grow.
