2026 Banking Industry Report

Overview of the Report

Agusto & Co. Limited, the foremost business information provider and pan-African credit rating agency, has released its 2026 Nigerian Banking Industry Report. The 2026 edition of the annual report provides a comprehensive review of Nigeria’s banking industry (“the Industry”), detailing its structure, competitive environment, regulatory landscape, financial condition, trends, near-term expectations, and outlook.

In the year under review, the Nigerian banking industry’s risk buffers were strengthened by circa ₦4.6 trillion capital injection, largely by domestic investors. Thus, the shareholders’ funds expanded by 31.2% year-on-year to ₦21.7 trillion as at FYE 2025. The capital adequacy ratio also improved to 25.5% (FYE 2024: 18.1%), strengthening the loss-absorbing capacity. In the near term, we anticipate further increase in the capital base on the back of the ongoing review of the regulatory framework for financial holding companies and banks with international operations. Based on the exposure draft released by the Central Bank of Nigeria (CBN), we believe circa ₦512.3 billion additional capital will be needed by the financial holding companies and international banks to comply with the updated regulation. The plan by some banks to further strengthen the risk buffers will also support additional capital injection before 31 December 2026.

The termination of regulatory forbearance triggered a substantial clean-up of the Industry’s loan portfolio. Banks wrote off circa ₦2.9 trillion in loans during the year, representing 63% of the capital injected. Some exposures, hitherto under regulatory forbearance, were also downgraded to stage 3 category. Thus, the impaired loan ratio increased to 6.4%, higher than 4.5% in the prior year and the 5% maximum regulatory guidance. Given the intensified recovery efforts by the banks, we anticipate a 100-basis-point moderation in the impaired loan ratio, albeit remaining above the 5% threshold.

Agusto & Co.’s 2026 Nigerian Banking Industry Report includes an analysis of the following:

• The structure and size of the African and Nigerian banking industries
• The impact of Nigeria’s macroeconomic environment on the banking industry
• Changes in the regulatory environment and expected impact on the industry
• A detailed assessment of the Industry’s asset quality, earnings, capital and liquidity
• A comprehensive analysis of the non-interest banking segment
• The impact of the recapitalisation exercise on the Industry
• A ranking of banks across various financial indicators
• The Industry’s historical financial data and forecasts for FY 2026
• Agusto & Co.’s risk rating and outlook for the Nigerian banking industry
• Gain market intelligence through a comprehensive review of the Nigerian banking industry
• Understand how macroeconomic and regulatory developments will shape the Industry
• Assess the financial strength and risk profiles of banks and key operating segments
• Identify emerging opportunities, vulnerabilities and competitive trends
• Understand Agusto & Co.’s expectations for the Industry’s performance in FY 2026