In a year marked by economic volatility, including inflation, naira depreciation, and rising operational costs, Nigeria’s largest banks have reported record-breaking profits for 2024. Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Stanbic IBTC, and Fidelity Bank collectively posted a staggering post-tax profit of N3.317 trillion, a remarkable feat given the country’s economic climate.
UBA led the pack with a 26.14% increase in profit, reaching N766.6 billion from N607.7 billion in 2023. Zenith Bank followed closely with a 52.5% jump, posting N1.03 trillion, while GTCO saw an 88.4% rise, reaching N1.017 trillion in post-tax profit. Stanbic IBTC also recorded significant growth, with a 60.23% increase to N225.3 billion, while Fidelity Bank’s profit soared by a striking 179.63% to N278.1 billion.
However, economists have pointed out that these profits may not tell the full story. The naira has depreciated by approximately 70% against the US dollar since May 2023, and when these profits are converted to dollars, the figures paint a less favorable picture. Former Zenith Bank Chief Economist Marcel Okeke explained that the devaluation of the naira has played a significant role in these reported gains, as many banks hold dollar-denominated assets that, when converted to naira, boost their reported earnings.
“The real growth in the economy is not reflected in these bank profits,” Okeke said. “While banks have benefited from currency devaluation, other sectors of the economy continue to face significant challenges.”
Indeed, while banks have thrived, many businesses in other sectors have struggled or closed down due to the harsh economic conditions. At least 10 multinational companies, including GlaxoSmithKline, Equinor, and Unilever Nigeria, have either shut down or relocated since 2023, citing currency volatility and economic instability.
The economic impact of these shifts is seen in the daily lives of Nigerians. Inflation, which stood at 23.18% in February 2025, coupled with the steep depreciation of the naira, has reduced the purchasing power of many citizens. As a result, while nominal incomes may appear higher, their real value has diminished due to rising costs of goods and services.
For example, a 50kg bag of cement, which cost around N2,000 to N3,000 in 2023, now costs approximately N10,000. “While someone receiving N3 million may think it’s a large sum, its purchasing power has significantly declined,” Okeke added.
Economist Ilias Aliyu also expressed concern over the disconnect between the banking sector’s profits and Nigeria’s overall economic health. “It is a strong contradiction that banks are making record profits while businesses are shutting down and Nigerians are struggling with high inflation,” Aliyu remarked. He further criticized the foreign exchange policies, which he believes disproportionately benefit banks instead of supporting broader economic growth.
While sectors like banking, oil & gas, and telecommunications have driven Nigeria’s economic resilience, Professor Bongo Adi of Lagos Business School emphasized that these sectors contribute little to job creation. “The resilience of output in 2024 was driven by three key sectors: banks, oil and gas, and telecoms, but these sectors have no employment capability,” Adi explained. “Their contribution to job growth is very small.”
In conclusion, while Nigeria’s banks have reported impressive profits, the broader economy faces ongoing challenges. The country’s economic recovery remains fragile, with the benefits of banking profits not translating into widespread economic prosperity or improved living standards for Nigerians.
