Eight leading Nigerian banks expanded their investment securities portfolios to a combined ₦41.78 trillion in the first quarter of 2025, up from ₦41.10 trillion at the end of 2024, signaling a growing preference for low-risk, return-generating financial instruments.
The data, sourced from the Q1 financial statements of top financial institutions—including Access Holdings, Zenith Bank, United Bank for Africa (UBA), GTCO, Ecobank, Wema Bank, First HoldCo, and FCMB Group—reflects a 1.65% increase over the three-month period.
Investment securities are typically acquired by banks to earn steady returns or comply with regulatory capital requirements rather than for frequent trading.
UBA led the cohort with ₦13.13 trillion in investment securities as of March 2025, up from ₦12.53 trillion in December 2024. Ecobank followed with ₦11.01 trillion, up from ₦10.68 trillion in the same period.
GTCO recorded a notable increase, growing its investment securities from ₦4.15 trillion to ₦4.62 trillion, while Zenith Bank’s holdings rose slightly to ₦5.11 trillion from ₦5.10 trillion.
Wema Bank reported an increase to ₦1.05 trillion, up from ₦900.2 billion. Conversely, First HoldCo and Access Holdings saw modest declines, with First HoldCo dropping to ₦5.68 trillion from ₦6.54 trillion, and Access Holdings reducing its position to ₦10.79 billion from ₦11.34 billion. FCMB Group also posted a minor dip, falling to ₦1.18 trillion from ₦1.19 trillion.
Commenting on the trend, economist and investment analyst Vincent Nwani said the shift underscores banks’ pursuit of profit through safer financial instruments over traditional lending.
“Banks are increasingly focusing on revenue from treasury operations and fees rather than interest on loans. They see fixed-income securities as a safer, more predictable way to earn, especially in an inflationary environment,” Nwani said.
He noted that while banks were traditionally meant to fund the real economy through lending, the current environment has made investment securities a more attractive proposition, further highlighting the need for reforms to incentivize credit expansion to businesses.
This pivot, experts suggest, reflects a broader shift in Nigeria’s banking sector, where profitability is increasingly tied to investment portfolios rather than core lending operations.
