Nigeria’s banking sector recorded a further decline in asset quality in January 2026, with the ratio of non-performing loans (NPLs) rising to 8.03 percent, according to the latest data from the Central Bank of Nigeria (CBN).
The figure represents an increase from 7.51 percent recorded in December 2025 and remains well above the CBN’s prudential benchmark of 5 percent. The rise comes seven months after the apex bank ended key regulatory forbearance measures that had allowed lenders to restructure distressed loans without immediately classifying them as impaired.
The increase in bad loans reflects the reclassification of previously restructured credit facilities following the withdrawal of the regulatory relief programme. Analysts say the development highlights growing asset quality pressures within the banking industry, even as lenders continue efforts to strengthen risk management and maintain financial stability.
