Abuja, Nigeria – Nigerian banks’ non-performing loans (NPLs) climbed to 7.51 percent in December 2025, exceeding the Central Bank of Nigeria’s (CBN) prudential benchmark of 5 percent, according to the apex bank’s 2025 Annual Report and Statement of Accounts.

Nigerian Army Named Africa’s Best In Counter-Terrorism Operations

The report showed a sharp deterioration in asset quality, with the industry’s NPL ratio rising from 4.5 percent in 2024 and 4.07 percent in 2023. The increase indicates that a larger proportion of bank loans have become delinquent or are at risk of default.

The development has raised concerns over the health of the banking sector, as rising bad loans could affect banks’ profitability, lending capacity, and overall financial stability if the trend persists. The CBN’s prudential guideline sets a maximum NPL ratio of 5 percent to ensure banks maintain sound risk management and a resilient financial system.