Amid Volatility: 10 Banks Exposure to Oil & Gas Down 22.2% to N12.2tn

Ten major Nigerian banks collectively decreased their exposure to the oil and gas sector by 22.2% in the 2025 financial year, bringing the total to N12.2 trillion. This reduction comes amid global oil market uncertainty and has influenced the banks' Non-Performing Loans (NPLs) and loan provisioning strategies.

The banks under review include FBN Holdings, Access Holdings, GTCO, UBA, Zenith Bank, Fidelity Bank, Wema Bank, FCMB Group, Sterling Financial Holdings, and Stanbic IBTC Holdings. During 2025, these institutions made substantial loan provisions for the oil and gas sector, adhering to the Central Bank of Nigeria's prudential guidelines.

Zenith Bank and Fidelity Bank recorded the highest exposures within the sector. Zenith Bank's exposure fell to N2.59 trillion in 2025, a 36.8% decrease from N4.11 trillion in 2024, with the sector accounting for 14.2% of its NPLs. Fidelity Bank reported N1.91 trillion exposure, a slight 4.3% decline from N1.89 trillion in 2024, noting that key sectors including Oil & Gas Upstream contributed to a 2.4% drop in its net loans.

In contrast, Guaranty Trust Holding Company (GTCO) saw its exposure rise by 39% to N1.59 trillion in 2025. The bank noted increased contributions from upstream and natural gas sectors, though midstream and downstream segments decreased. Overall, the ten banks' gross loans and advances across all sectors grew by 14.7% to N56.05 trillion in 2025, with oil and gas comprising about 21.8% of this total.

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Net loans and advances dropped by 2.4% to N4.3trillion, with three key sectors accounting for the decline in the loan book (Oil & Gas Upstream, Communication and General Commerce, Construction, Manufacturing, Agriculture, etc.),