Zenith Bank Plc’s 2025 financial results have revealed a significant slowdown in its core lending activities, with the loan book expanding by a marginal 4.8%.
While the bank achieved a landmark ₦1.04 trillion profit, the underlying credit data shows a troubling trend: the Nigerian government has become the bank’s most problematic borrower.
The bank recorded a total carrying amount of ₦10.448 trillion in its loan portfolio, up from ₦9.96 trillion in 2024. However, the quality of these assets is under pressure, as evidenced by a massive ₦614 billion impairment allowance on loans booked during the year.
Net impairment charge on financial instruments stood at ₦741.6 billion.
The Government Debt Trap: ₦227 Billion Provision
In a reversal of the traditional “risk-free” status of government exposure, Zenith Bank’s loans to the public sector emerged as the single largest source of impairment in 2025.
| Sector | Carrying Amount (₦) | Impairment Allowance (₦) | Credit Quality Signal |
| Government | ₦1.008 Trillion | ₦227.0 Billion | Most Impaired Sector (Gross) |
| General Commerce | ₦3.135 Trillion | ₦116.6 Billion | High-volume retail risk. |
| Power Sector | ₦183.7 Billion | ₦106.3 Billion | Lingering structural issues. |
| Oil and Gas | ₦2.520 Trillion | ₦69.86 Billion | Stable due to high energy prices. |
Source: MoneyCentral, Zenith Bank
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Risk Shift: The ₦227 billion impairment against government loans suggests that state-level obligations or specific federal project financing are facing severe repayment delays.
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Sector Exposure: Despite the impairments, General Commerce remain the bank’s largest sector exposure at ₦3.135 trillion, followed by Oil & Gas at ₦2.52 trillion.
Loan Book Stagnation: The 4.8% Growth Floor
While competitors like Wema Bank saw loan growth of 44.6%, Zenith Bank adopted a “fortress” strategy, virtually freezing new credit expansion.
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Conservative Lending: A 4.8% growth rate is effectively a contraction in real terms when adjusted for inflation. This reflects Zenith’s strategic decision to prioritize Investment Securities (Bonds and T-Bills) over the “real sector” to avoid further impairments.
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The 65% LDR Pressure: This slow growth puts Zenith at risk of further CBN Cash Reserve Ratio (CRR) penalties, as it continues to struggle to meet the mandatory 65% Loan-to-Deposit Ratio (LDR) in a volatile economy. LDR stood at 47.5% as at Full Year 2025, according to MoneyCentral calculations.
Operational Headwinds: Power and Manufacturing
The bank’s impairment data serves as a heat map for the Nigerian economy’s struggles:
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Manufacturing (₦1.42tn): While not the top impaired sector, manufacturers are under heavy strain from ₦1,700 diesel costs.
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Power Sector (₦106.3bn): Ongoing defaults in the power sector continue to haunt Tier-1 balance sheets, despite various government-led “interventions” over the last decade.
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