By Elizabeth Adegbesan
The withdrawal of the Central Bank of Nigeria’s (CBN) COVID-19 regulatory forbearance given to banks has pushed banks’ Non-Performing Loans (NPLs) ratio to 9.94 per cent in the first quarter of 2026 (Q1’26), significantly above the apex bank’s prudential benchmark of 5.0 per cent.
The development was disclosed in the CBN’s first quarter 2026 (Q1’26) Economic Report, which attributed the increase to the end of the long-standing pandemic-era relief measures introduced to support borrowers and strengthen financial system stability during the COVID-19 crisis.
According to the report, the NPL ratio rose by 2.43 percentage points from 7.51 per cent in the fourth quarter of 2025.
The CBN stated: “With the withdrawal of the Bank’s long-standing COVID-19-related forbearance measures to promote transparency and accountability in the banking system, the non-performing loans (NPLs) ratio stood at 9.94 per cent, above the 5.00 per cent threshold.” Despite the rise in bad loans, the apex bank maintained that the Nigerian banking industry remained resilient, with key financial soundness indicators largely above regulatory requirements.
