The Central Bank of Nigeria reported that the Non-Performing Loans (NPLs) ratio in the banking sector hit 9.94 percent during the first quarter of 2026. This figure sits well above the regulator’s 5.0 percent limit. The jump follows the termination of regulatory forbearance measures originally enacted to assist borrowers throughout the COVID-19 pandemic.
Compared to the 7.51 percent recorded in the final quarter of 2025, the NPL ratio climbed by 2.43 percentage points. The CBN noted that while this increase highlights the exposure of previously restructured loans, the banking system maintains overall resilience. Other key metrics remain strong, as the industry Liquidity Ratio rose to 67.32 percent, significantly surpassing the 30 percent minimum. Furthermore, the Capital Adequacy Ratio reached 13.19 percent, outperforming the 10 percent regulatory requirement.
Economic support continued during this period, with total credit from Other Depository Corporations growing 5.95 percent to N60.73 trillion. The services sector received the bulk of this funding at 59.54 percent, followed by industry at 34.10 percent and agriculture at 6.36 percent. Although consumer lending declined, the report indicates that banks are sufficiently capitalized and liquid enough to manage market risks while still funding vital economic sectors.
