Accra, Ghana — Most Nigerian banks are set to end their longstanding forbearance by late 2025. However, this shift is expected to cause some large Stage 2 loans to be reclassified as impaired, according to a new peer credit analysis by Fitch Ratings on the country’s major banks.
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A UK-based firm highlights that banks’ readiness is bolstered by restructuring numerous Stage 2 loans, increased capital raised across the banking sector due to higher paid-in capital requirements, and enhanced loss-absorption capacity driven by improved net interest margins.
This will help counteract increased loan impairment charges and prudential provisions resulting from the expiry of forbearance and the associated pressure on total capital adequacy ratios across the banking sector.
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It pointed out that certain banks will be allowed to continue operating under forbearance, subject to certain penalties, including the inability to pay dividends.
It added that the naira devaluation has been positive for the banking sector’s foreign-currency liquidity as it has led to higher foreign exchange market turnover.
A total of US$2.2 billion will mature by the end of 2026.
Fitch concluded that he banks generally have sufficient liquidity to meet their Eurobond obligations without needing to refinance.
Last Updated on April 26, 2026 by Samuel Kwame Boadu
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