Nigerian Banks Borrow N7.8 Trillion from IFC, Afrexim to Fund Lending and Infrastructure

Ten major Nigerian banks collectively borrowed N7.81 trillion in the 2025 financial year from institutions including the Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC). This borrowing aims to meet lending demands across Africa and support Nigeria's infrastructure development. The figure marks a 20.2% decrease compared to the N9.74 trillion borrowed by the same banks in 2024.

These banks frequently access funds from both local and international financial institutions such as the African Export-Import Bank (Afrexim), the African Development Bank, and JP Morgan Securities Limited. They also utilize CBN facilities like the Shared Agent Network Facility (SANEF) and the Non-Oil Export Stimulation Facility (NESF) to bolster targeted sectors. The participating banks include Access Holdings, Zenith Bank Plc, United Bank for Africa Plc (UBA), First HoldCo Plc, Guaranty Trust Holding Company (GTCO), Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings, Wema Bank Plc, and Sterling Financial Holdings Company Plc.

An investigation by THISDAY revealed that Access Holdings was the largest borrower from international financial institutions and the CBN in 2025, followed by First HoldCo and UBA. Access Holdings, a Pan-African bank, reported approximately N2.03 trillion in long- and short-term borrowings in 2025, a 15.6% drop from N2.4 trillion in 2024. This included a $300 million term loan facility from Afrexim in July 2025, with an initial tenor of six months extendable up to three years, priced at a floating interest rate of Term SOFR plus a 4% margin.

First Holdings reported N1.94 trillion in borrowings for 2025, an increase of about 25% from N1.56 trillion in 2024. UBA's borrowings stood at N924 billion in 2025, a 34% decline from N1.39 trillion in 2024. Guaranty Trust Holding Company (GTCO) recorded the lowest borrowing amount from the CBN and international finance companies in 2025, totaling N82.24 billion. This represents a significant 73.47% decrease from N310.02 billion in 2024. GTCO's reduced borrowing was influenced by a decline in its outstanding balance on 'Due to CBN,' which fell to N64.1 billion in 2025 from N288.4 billion in 2024. This CBN facility has a tenor of two years, maturing on March 22, 2026, with an interest rate of 17%.

“

The amount of N64,114,279,000 (December 2024: 288,376,276,000) represents the outstanding balance on Due to CBN, which represents borrowings with the financier CBN for a tenor of 2 years with a maturity date of 22nd of March 2026. The interest rate on the facility is 17%.