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After basking in record profits last year, Nigeria’s biggest banks are now in a bind. A toxic mix of inflation, rising costs, and regulatory burdens is reversing their fortune, and everyday customers could soon feel the ripple effects.

KEY POINTS:
  • Profits Fall, Pressure Rises: Banks like GTCO and FirstHoldCo post double-digit profit declines once riding high on FX windfalls. The easy money era is over, and the reality check is here.
  • Inflation Isn’t Just for Consumers Anymore: As food and fuel prices climb, banks are also feeling the pinch—burning through billions to stay visible (FirstHoldCo’s N19bn ad spend) and online (Access Bank’s N41bn IT bill).
  • Regulators Aren’t Letting Up: With levies like AMCON and tighter oversight, banks are stuck between obeying the rules and surviving the costs. It’s not just about compliance—it’s about keeping the doors open.
  • Not All Banks Are Sinking: Fidelity Bank’s surprise 168% profit jump raises an uncomfortable question: Are other banks just spending poorly? Or is Fidelity playing a different game entirely?
This could translate into tighter lending, higher fees, and slower service innovation for customers. The same economic pressure that Nigerians feel in the market is also hitting their banks.

Will banks pass these costs on to customers or reinvent their operations? This profit squeeze might force a rethink of how Nigerian banks serve the public.