The country’s largest commercial banks—Access Holdings, United Bank for Africa, Guaranty Trust Holding Company, Zenith Bank, and First Bank Holdings (collectively known as FUGAZ)—generated a combined N4.8 trillion in interest from government bonds and treasury instruments during the first three quarters of 2025.
Regulatory filings submitted to the Nigerian Exchange reveal that the group’s holdings in sovereign debt rose 16.5% to N49.152 trillion by the end of September, up from N42.204 trillion at the close of 2024.
Access Holdings commanded the largest portfolio at N15.25 trillion, followed by UBA with N13.59 trillion, Zenith Bank at N9.05 trillion, First Bank Holdings at N6.35 trillion, and GTCO at N4.91 trillion. The interest earnings from these positions broke down as follows:
– Access Holdings: N1.3 trillion
– Zenith Bank: N1.14 trillion
– UBA: N1.03 trillion
– First Bank Holdings: N720.15 billion
– GTCO: N570.23 billion
Industry observers note that the surge reflects a deliberate pivot toward low-risk, high-return central bank and federal government paper, even as private-sector credit expansion lagged.
**Loan Growth Trails Securities Build-Up**
While investment portfolios expanded aggressively, customer lending grew at a more measured pace. Total advances across the five institutions reached N42.26 trillion in September, a 7.3% increase from N39.4 trillion a year earlier.
Individual loan-book changes varied:
– Access Holdings: +20% to N12.9 trillion
– GTCO: +16.1% to N3.24 trillion
– First Bank Holdings: +9.0% to N9.55 trillion
– UBA: +3.5% to N7.19 trillion
– Zenith Bank: -0.3% to N9.37 trillion
The disparity underscores a broader strategy of channeling surplus liquidity into predictable fixed-income yields rather than extending credit amid elevated risk perceptions.
CBN Prepares Fixed-Income Overhaul
The Central Bank of Nigeria has signaled an imminent transfer of all bond and treasury bill trading and clearing from the FMDQ platform—presently overseen by the Securities and Exchange Commission—to its own RTGS and S4 settlement infrastructure.
The shift, set to commence this month, will centralize both operational and supervisory authority within the apex bank. For the FUGAZ lenders, currently enjoying peak earnings from these assets, the reform could either enhance efficiency or alter the yield landscape, depending on the final regulatory framework.
