Nigerian banks' foreign earnings jump after naira's 70% drop, Fitch reports
Fitch Ratings’ September 14, 2026 report shows the 70% naira depreciation between 2023 and 2024 lifted the share of foreign subsidiaries in Nigerian banks’ earnings and assets. United Bank for Africa’s foreign units generated 77% of its 2025 net income (up from 44% in 2024) and held 52% of total assets. Access Bank’s foreign subsidiaries contributed 48% of group net income in 2025, up from 30% in 2021, and accounted for 51% of assets, boosted by its July 2025 purchase of Mauritius‑based AfrAsia Bank Limited for $6.9 billion—about 19% of Access’s consolidated holdings. Zenith Bank’s foreign operations delivered N331.7 billion pre‑tax profit in 2025, 26.3% of group earnings, while its UK arm held N3.6 trillion of the bank’s N6.7 trillion customer deposits.
The trend reflects a deliberate cross‑border expansion drive, but Fitch flagged that Access Bank exceeded the 10% shareholders’ fund limit on foreign investments, affecting dividend payments, and expects the bank to cut holdings to regain compliance. Nigerian banks raised fresh capital after 2026’s higher paid‑in‑core rules, with part earmarked to strengthen overseas units. Despite growing foreign footprints, Fitch stresses that bank ratings remain tied to Nigeria’s sovereign credit, and large CBN reserves keep sovereign risk high, though geographic diversification should lessen domestic sensitivity over time.
Given these shifts, will you weigh Nigerian banks’ foreign income strength against their regulatory limits and sovereign exposure when assessing their stability or making investment decisions?