Top 5 Nigerian Banks Earn N4.8 Trillion from Fixed Income Investments in 9 Months (2025 Report)

 

Top 5 banks that earn from Fixed income

Nigeria’s Top Banks Cash in on Fixed-Income Boom

Nigeria’s top five financial powerhouses — Access Corporation, United Bank for Africa (UBA), Zenith Bank, First HoldCo, and GTCO Holdings — collectively earned a massive ₦4.8 trillion from fixed-income investments in the first nine months of 2025.

This report, released by Nairametrics, highlights how these banks are making more money from government-backed investments than traditional loans. Fixed-income investments like treasury bills and bonds are currently offering high interest rates, making them very attractive to banks seeking stable returns.

Surge in Government Securities Investment

The banks’ total investment in government securities and treasury bills climbed from ₦42.20 trillion in 2024 to ₦49.15 trillion in 2025, representing a strong 16.5% increase.

This growth means the banks are channeling more of their funds into safe, interest-earning assets instead of riskier lending. In times of economic uncertainty or rising inflation, fixed-income assets become the preferred option for steady profits.

How Each Bank Performed

Here’s a breakdown of how much each major bank invested and earned:

Access Bank led the group with ₦15.25 trillion invested and ₦1.3 trillion earned.

UBA followed with ₦13.59 trillion invested, generating ₦1.03 trillion in income.

Zenith Bank held ₦9.05 trillion and earned ₦1.14 trillion.

First HoldCo invested ₦6.35 trillion and made ₦720.15 billion.

GTCO Holdings invested ₦4.91 trillion, earning ₦570.23 billion.

This shows how much banks now depend on investments to grow their profits, not just lending.

Slower Growth in Loans to Customers

Despite the large income from investments, the banks’ total loans to customers rose only slightly — from ₦39.4 trillion in 2024 to ₦42.26 trillion in 2025, which is a 7.3% growth.

This small increase shows that banks are being cautious with lending. Many prefer investing in government securities, which are safer and guaranteed, rather than lending to private companies or individuals who might default on payments.

CBN’s New Move to Modernize Trading

The Central Bank of Nigeria (CBN) has announced plans to move all fixed-income trading and settlement to a new system called the S4 Real-Time Gross Settlement (RTGS).

This upgrade will make trading faster, safer, and more transparent for banks and investors. It’s part of the CBN’s effort to modernize Nigeria’s financial system and improve efficiency in the bond market.

What This Means for Nigeria’s Banking Sector

The shift toward fixed-income investments reveals how Nigerian banks are adapting to the current economy. With inflation high and business risks rising, banks are choosing safer profits over risky loans.

This strategy may protect them from losses but could slow credit growth in the economy. However, it also proves that Nigerian banks remain profitable and smart in managing their resources even during tough times.