In 2024, nine leading Nigerian banks collectively generated N14.26 trillion in interest income, marking a 119.55% increase from N6.49 trillion in 2023. This significant growth is attributed to the Central Bank of Nigeria's (CBN) monetary policy, which raised the Monetary Policy Rate (MPR) to 27.5% to combat inflation.
Highlights:
- Access Holdings led with N3.11 trillion in interest income, a 98.69% increase.
- Zenith Bank followed closely with N2.72 trillion, up 137.74%.
- First Holdco (FirstBank) reported N2.39 trillion, a 155% surge.
- United Bank for Africa (UBA) earned N2.37 trillion, a 120% rise.
- Guaranty Trust Holding Company (GTCO) achieved N1.32 trillion, up 148%.
The sharp increase in interest income reflects the banks' strategic lending in a high-interest environment. However, this growth contrasts with the challenges faced by the manufacturing sector, which reported operational costs of N2.5 trillion in 2024. Manufacturers have expressed concerns over the rising cost of credit and energy, which significantly impact their production expenses.
While Nigerian banks celebrate record earnings, the real sector grapples with escalating costs. As the CBN continues its tight monetary stance, the balance between financial sector growth and industrial sustainability remains a critical issue. What steps can be taken to support manufacturers in this challenging economic landscape?
