FINANCIAL STABILITY REPORT – DECEMBER 2024

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FINANCIAL
STABILITY
REPORT

DECEMBER 2024

FINANCIAL STABILITY REPORT – DECEMBER 2024
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CONTENTS

Securities and Exchange Commission Regulatory and Supervisory Activities .... 33
2.4.1.


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3.7.
3.7.1.
Guidelines on Management of Dormant Accounts, Unclaimed Balances and
3.7.2.
Guidelines on the Implementation of the Foreign Currency Disclosure, Deposit,


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APPENDIX 2: PERFORMANCE OF SELECTED CURRENCIES AGAINST THE US
APPENDIX 4: REAL SECTOR INITIATIVES: SUMMARY OF DISBURSEMENTS AND
APPENDIX 5: SELECTED FINANCIAL SOUNDNESS INDICATORS OF THE NIGERIAN


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LIST OF FIGURES
FIGURE 2.1 HERFINDAHL-HIRSCHMAN INDEX AND CONCENTRATION RATIOS OF THE BANKING
FIGURE 3.5 EXPOSURE OF BANKING SYSTEM TO OIL & GAS, MANUFACTURING AND SERVICES ....40


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LIST OF TABLES
TABLE 2.6: NIGERIAN EXCHANGE LIMITED INDICES, ASI AND EQUITY MARKET CAPITALISATION ..22
TABLE 2.20: WOMEN AND WOMEN-OWNED ENTERPRISES TRANSACTIONS ON THE NATIONAL
TABLE 3.2: SOURCES AND UTILISATION OF INVESTIBLE FUNDS OF PMBS AS AT DECEMBER 2024 .48


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TABLE 3.4: SOURCES AND UTILISATION OF INVESTIBLE FUNDS OF FINANCE COMPANIES AS AT
TABLE 3.6: SOURCES AND UTILISATION OF INVESTIBLE FUNDS OF MICROFINANCE BANKS AS AT
TABLE 3.7: MATURITY STRUCTURE OF MFBS LOANS AND ADVANCES AND DEPOSIT LIABILITIES ...55
TABLE 5.8: REALISATION FROM DISPOSAL AND RENTS OF FIXED ASSETS OF BANKS IN-LIQUIDATION


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LIST OF BOXES
Box 1: REVIEW OF MINIMUM CAPITAL REQUIREMENTS FOR COMMERCIAL, MERCHANT AND


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LIST OF ACRONYMS
Acronym
Description
AACB
Association of African Central Banks
ACGS
Agricultural Credit Guarantee Scheme
AEs
Advanced Economies
AMCON
Asset Management Corporation of Nigeria
AML/CFT/CPF
Anti-Money Laundering, Combating the Financing of Terrorism and
Countering Proliferation Financing
ASI
All Share Index
AuM
Assets under Management
BCBS
Basel Committee on Banking Supervision
BDCs
Bureaux de Change
BOA
Bank of Agriculture
BOI
Bank of Industry
BRICS
Brazil, Russia, India, China, and South Africa
BVN
Bank Verification Number
CABS
Community of African Banking Supervisors
CACS
Commercial Agriculture Credit Scheme
CAR
Capital Adequacy Ratio
CBDC
Central Bank Digital Currency
CBN
Central Bank of Nigeria
CCP
Central Counterparties
CIBN
Chartered Institute of Bankers of Nigeria
CIC
Currency in Circulation
CIS
Collective Investment Scheme
CMNBs
Commercial, Merchant and Non-interest Banks
CMOs
Capital Market Operators
COB
Currency Outside Banks
CODC
Currency Outside Depository Corporations
CPI
Consumer Price Index


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Acronym
Description
CPS
Contributory Pension Scheme
CRMS
Credit Risk Management System
CRR
Cash Reserve Requirement
CSE
Crisis Simulation Exercise
CSWAMZ
College of Supervisors of the West African Monetary Zone
DAX
Deutscher Aktienindex (German stock index of 30 major German
companies)
DCs
Depository Corporations
DFIs
Development Finance Institutions
DIF
Deposit Insurance Fund
D-SIBs
Domestic Systemically Important Banks
DVP
Delivery Versus Payment
EBAs
Eligible Bank Assets
ECB
European Central Bank
EGX CASE 30
Egypt Stock Exchange (Cairo and Alexandria Stock Exchange) 30
Stock Index
EMDEs
Emerging Markets and Developing Economies
ESG
Environmental, Social & Governance
ETF
Exchange Traded Funds
EVD
Ebola Virus Disease
FAO
Food and Agriculture Organisation
FATF
Financial Action Task Force
FCs
Finance Companies
FGN
Federal Government of Nigeria
FMBN
Federal Mortgage Bank of Nigeria
FPI
Foreign Portfolio Investment
FRACE
Financial Regulation Advisory Council of Experts
FSIs
Financial Soundness Indicators
FSR
Financial Stability Report


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Acronym
Description
FSRCC
Financial Services Regulation Co-ordinating Committee
GCMX
Gezawa Commodity Market and Exchange Limited
GDP
Gross Domestic Product
GIABA
Inter-Governmental Action Group Against Money Laundering in
West Africa
GSE
Ghanaian Stock Exchange
GSI
Global Standing Instruction
HHI
Herfindahl-Hirschman Index
I&E
Investor & Exporter
ICAAP
Internal Capital Adequacy Assessment Process
ICE
Intercontinental Exchange
ICFA
Implied Cash Flow Analysis
IFOs
Illegal Fund Operators
IFRS
International Financial Reporting Standards
IMF
International Monetary Fund
IRRBB
Interest Rate Risk in the Banking Book
KOB
Knowledge of Business
KYC
Know Your Customer
LCFE
Lagos Commodities and Futures Exchange
LDR
Loan-Deposit Ratio
LR
Liquidity Ratio
M1
Narrow Money Supply
M2
Broad Money Supply
M3
M2 plus CBN Bills held by the money-holding sectors
MC
Market Capitalization
MENA
Middle East and North African Countries
MFBs
Microfinance Banks
MHSs
Money Holding Sectors
MICEX
Moscow Interbank Currency Exchange


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Acronym
Description
MMOs
Mobile Money Operators
MoUs
Memoranda of Understanding
MPR
Monetary Policy Rate
MSMEs
Micro, Small and Medium Enterprises
MTDS
Medium-Term Debt Strategy
NAICOM
National Insurance Commission
NAPGEP
National Peer Group Educator Programme
NASD
National Association of Securities Dealers
NAV
Net Asset Value
NBS
National Bureau of Statistics
NCR
National Collateral Registry
NDA
Net Domestic Assets
NDIC
Nigeria Deposit Insurance Corporation
NDPR
Nigerian Data Protection Regulation
NEXIM
Nigerian Export-Import Bank
NFA
Net Foreign Assets
NFIU
Nigerian Financial Intelligence Unit
NGX
Nigerian Exchange Limited
NIBSS
Nigeria Inter-Bank Settlement System
NICPAS
Nigeria Cheque Printers’ Accreditation Scheme
NIDIF
Non-Interest Deposit Insurance Fund
NIMC
National Identity Management Commission
NIN
National Identity Number
NMRC
Nigeria Mortgage Re-finance Company Plc
NPLs
Non-Performing Loans
NSBPs
Nigeria Sustainable Banking Principles
NSE 20
Nairobi Stock Exchange 20-Share Index
NSE ASI
Nigerian Stock Exchange All-Share Index
NTBs
Nigerian Treasury Bills


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Acronym
Description
NYSC
National Youth Service Corps
OAGF
Office of the Accountant General of the Federation
OBB
Open Buy Back
ODCs
Other Depository Corporations
OFIs
Other Financial Institutions
OPEC
Organisation of Petroleum Exporting Countries
OPEC+
OPEC Members plus 10 other oil-producing countries
ORB
OPEC Reference Basket
OTC
Over-the-Counter
PAIF
Power and Aviation Infrastructure Fund
PAR
Portfolio-At-Risk
PCX
Prime Commodity Exchange
PENCOM
National Pension Commission of Nigeria
PFAs
Pension Fund Administrators
PFCs
Pension Fund Custodians
PMBs
Primary Mortgage Banks
PoS
Point of Sale
PSBs
Payment Service Banks
PSDIF
Payment Service Deposit Insurance Fund
PSPs
Payments System Providers
PSV 2025
Payments System Vision 2025
QR
Quick Response
RAS
Risk Assessment Summary
RBS
Risk-Based Supervision
RCAR
Root Cause Analysis Report
RCMMP
Revised Capital Market Master Plan
ROA
Return on Assets
ROE
Return on Equity
RRPs
Recovery and Resolution Plans


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Acronym
Description
RTGS
Real-Time Gross Settlement
S&P/FMDQ
Standards and Poor’s Financial Market Dealers Quotations
S&P/TSX
Standards and Poor’s Composite Index of the Toronto Stock
Exchange
SANEF
Shared Agent Network Expansion Facilities
SCV
Single Customer View
SDRs
Special Drawing Rights
SEC
Securities and Exchange Commission
SIF
Securities Issuers Forum
SMEs
Small and Medium Enterprises
SRE
Supervisory Review and Evaluation
SSA
Sub-Saharan Africa
TIN
Tax Identification Number
WAMZ
West African Monetary Zone
WEO
World Economic Outlook
WTI
West Texas Intermediate


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GOVERNOR’S STATEMENT
The Financial Stability Report highlights developments in the Nigerian financial system, in
the light of geopolitical tensions, global and domestic macroeconomic headwinds that
impact on financial system stability. The Report captures the multi-pronged measures
undertaken by the Central Bank of Nigeria to sustain financial stability and support inclusive
economic growth.

The ability of central banks in the preceding year to meet their core function of price stability
was negatively impacted by global inflationary pressure. However, inflationary pressure
moderated in response to sustained contractionary monetary policy, lower commodity
prices, and slower wage growth, while global output remained stable at about 3.3 per cent.

In Nigeria, output rose by 0.57 percentage point to 3.65 per cent, compared with 3.08 per
cent in the first half of the year, despite persistent inflation. The growth in Nigeria was
spurred by the deliberate efforts of the Bank to encourage credit flows to the key sectors of
the economy, which stood at ₦59.22 trillion at end-December 2024.
Notwithstanding global and domestic headwinds in the macroeconomic space, the Bank
continued to promote price stability, implement regulatory and supervisory measures, as
well as sustain market development initiatives, such as banking-sector recapitalisation,
foreign exchange market reforms, among others. The outcomes of these actions were
reflected in the resilience and stability of the financial system.

The 2025 domestic outlook for Nigeria remains optimistic. Given increased production by
the indigenous petroleum refineries, fiscal savings from subsidy removal, foreign exchange
reforms and innovative payment system initiatives, the stability of the financial system is
expected to be sustained. In addition, increased collaboration with the fiscal authorities and
other financial system regulators will further promote a safe, stable, and sound financial
system in Nigeria.


Olayemi Michael Cardoso
Governor, Central Bank of Nigeria


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FOREWORD
The global financial system showed mixed results due mainly to a combination of factors,
including geopolitical and trade frictions, commodity price volatility, higher debt levels and
disruptive technologies. The bond markets experienced divergent yields, shaped by the
different monetary policy stance across many AEs and EMDEs. In the stock markets,
performances were largely bullish, driven by decelerating inflationary pressures and
expectations of policy normalisation.
In Nigeria, the stable exchange rate in the second half of 2024, coupled with the attractive
yields in the bond and equity markets resulted in a generally bullish financial market.
Despite the elevated inflation levels, the markets were broadly stable and attractive to both
domestic and foreign investors. Financial Soundness Indicators for the banking system
revealed a healthy banking industry, with capacity to support the real sector. Furthermore,
regulatory oversight was focused on ensuring that banks shore up capital to sustain
resilience and soundness in the banking system.
Although global geo-political and macroeconomic shocks continue to threaten stability, the
Bank remains confident that its regulatory policy toolkit will remain effective in maintaining
safety and soundness of the financial system. In addition, sustained collaboration with other
financial sector regulators and the fiscal authority, will promote confidence and stability in
the market.
The December 2024 edition of the FSR is structured into nine sections. Section one
considers developments in the global and domestic economies, while section two outlines
developments in the financial system. Sections three and four highlight regulatory and
supervisory issues as well as developments in the payments system. Sections five, six and
seven focus on major activities in the deposit insurance schemes, pension and insurance
subsectors, respectively. Sections eight and nine discuss the key risks and the outlook for
financial stability, respectively.

Philip Ikeazor
Deputy Governor, Financial System Stability


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EXECUTIVE SUMMARY
Global economic growth remained steady at 3.3 per cent in 2024, unchanged from the 2023
level, supported by resilient labour markets and easing inflation in major economies.
However, growth was uneven across regions, as output in Advanced Economies held firm
at 1.7 per cent, while output growth in Emerging Market and Developing Economies
moderated to 4.2 per cent, reflecting slower activity in China and India. Sub-Saharan Africa
recorded output growth of 3.8 per cent in 2024, driven by a recovery in services and
improved supply chain efficiency. Global financial conditions improved, aided by the
expected monetary policy easing and receding near-term financial stability risks.
Global inflation eased to 5.7 per cent in 2024 from 6.7 per cent in 2023, with price pressures
declining in both Advanced and Emerging Economies to 2.6 per cent and 6.7 per cent,
respectively. However, inflation in Sub-Saharan Africa rose slightly to 18.3 per cent, driven
by higher energy costs and currency depreciations, which continued to undermine the
efforts of central banks to anchor inflation expectations and maintain financial stability.
On the domestic scene, the Nigerian economy grew by 3.65 per cent in real terms in the
second half of 2024, from 3.08 per cent in the first half, buoyed mainly by the non-oil sector.
The services sector contributed 2.90 percentage points, followed by agriculture and
industry sectors. Oil sector growth moderated but remained positive. Headline inflation rose
marginally to 34.80 per cent at end-December 2024, compared with 34.19 per cent at
end-June 2024, reflecting elevated energy prices and exchange rate pass-through. In
response, the Central Bank of Nigeria maintained a tight monetary policy stance.
The Nigerian financial system remained sound and resilient. In particular, the banking
industry showed improved financial soundness indicators, with banking stress test results
confirming adequate solvency and liquidity buffers. Regulatory oversight was intensified
while macroprudential measures were strengthened to maintain stability. In furtherance of
banking sector reforms, the Bank sustained implementation of the recapitalisation policy,
which mandates new minimum capital requirements by March 2026, while efforts to
improve financial inclusion and strengthen digital finance infrastructure continued.
The Nigerian payments system sustained growth, marked by rising BVN enrolment and
increased activity in e-payment channels. The number of licensed Payment Service
Providers (PSPs) increased further, enhancing access to financial services. In the foreign
exchange market, the Naira depreciated moderately during the review period. However,
external reserves rose to US$40.19 billion by end-December 2024, reflecting increased
oil-related inflows and investor confidence in the reform measures.
To further bolster public confidence, the Nigeria Deposit Insurance Corporation (NDIC)
maintained enhanced deposit insurance coverage. The pension industry recorded growth
in membership and asset-to-GDP ratio, while the insurance sector recorded significant
growth as the ratio of insurance assets to GDP improved to 1.78 per cent, reflecting gradual
progress in deepening insurance penetration. In addition, the insurance industry capital
adequacy ratio remained above the regulatory threshold, indicating strong solvency.
Capital market activity remained positive, with the equities market sustaining gains,
supported by recapitalisation-related listings and robust investor interest. The NGX All-


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Share Index and market capitalisation rose by 2.87 per cent and 10.89 per cent,
respectively, in the second half of 2024. Domestic participation remained dominant, while
foreign portfolio flows remained positive. Conversely, the debt market witnessed a decline
in new issuances and market capitalisation, particularly for FGN bonds and Eurobonds.
Key risks to financial system stability included high inflation, operational and cybersecurity
risks. Nevertheless, the financial system outlook remained positive, underpinned by
proactive regulatory oversight and reform momentum. The Bank and other financial system
regulatory authorities, in partnership with the fiscal authority, remain committed to
implementing robust risk mitigation frameworks to preserve financial stability in Nigeria.
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1. ECONOMIC AND FINANCIAL DEVELOPMENTS
1.1 Output Growth
1.1.1 Global Output Growth
Global growth remained steady at 3.3 per cent in 2024, as resilient labour markets and
easing inflationary pressures largely offset rising trade tensions and persistent structural
constraints. However, this stability masks divergent growth trends across regions
(IMF, WEO April 2025).
Output growth in Advanced Economies (AEs) remained unchanged at 1.7 per cent in 2024,
supported by positive wealth effects, easing monetary policy, and favourable financial
conditions, particularly in the United States. By contrast, growth in Emerging Market and
Developing Economies (EMDEs) fell slightly to 4.3 per cent in 2024, from 4.7 per cent in
2023, reflecting declines in China and India. In China, economic activity slowed, owing to
the weak rebound of the property sector and subdued consumer sentiment. Similarly, India
experienced a deceleration, driven largely by a slowdown in industrial production.
In the euro area, growth remained sluggish, constrained by continued weakness in
manufacturing and goods exports, particularly in Germany, despite a modest rebound in
household consumption.
In Sub-Saharan Africa (SSA), output growth rose to 3.8 per cent in 2024, from 3.6 per cent
in 2023, supported by expansion in the services sector, gradual resolution of supply
bottlenecks, and favourable weather conditions.
Figure 1.1 Global Output Growth

Source: IMF World Economic Outlook Update, July 2024
Table 1.1: Global Output Growth

2025*
World

Advanced Economies

United States

Euro Area

Japan

United Kingdom

Canada

Emerging
Market
&
Developing
Economies


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China

Middle East & Central Asia
-3.2


Sub-Saharan Africa

Nigeria
-1.8


Source: IMF WEO January 2025 *IMF Projections


1.1.2 Domestic Output Growth
The domestic economy sustained its positive trajectory in the second half of 2024. Real
output grew by 3.65 per cent in the second half of 2024, compared with 3.08 per cent in the
first half.

Figure 1.2 Gross Domestic Product (Growth %)

Source: National Bureau of Statistics

The non-oil sector remained the main driver of growth, contributing 3.49 percentage points,
while the oil sector contributed 0.16 percentage point. The growth in the non-oil sector was
due to the improved performance of the services sector. Oil GDP expanded by 3.32 per
cent compared with 7.92 per cent in the preceding half year. The expansion in the oil sector
was largely attributed to enhanced surveillance at critical production terminals, which
boosted oil production by 6.39 per cent to 1.38 million barrels per day (mbpd) during the
review period.
Table 1.2: Crude Oil Production
H1 2024
Daily Average
H2 2024
Daily Average
January
1,426,574
July
1,306,657
February
1,322,208
August
1,351,689
March
1,230,518
September
1,324,293
April
1,281,478
October
1,333,322
May
1,251,494
November
1,485,656
June
1,276,159
December
1,484,585
AVERAGE
1,298,072
AVERAGE
1,381,034
Source: Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

H1 2022
H2 2022
H1 2023
H2 2023
H1 2024
H2 2024
PER CENT


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An analysis of sectoral contribution to real GDP growth indicated that the services sector
contributed 2.90 percentage points, relative to the 2.34 percentage points in the preceding
half year. The sustained performance of the services sector was driven largely by growth
in the ICT sub-sector, which was primarily propelled by the continuous adoption of remote
work and virtual collaboration tools, underscoring the robust growth of the digital
ecosystem.
The agricultural sector contributed 0.40 percentage point to real GDP growth, higher than
0.18 percentage point in the preceding half year. The contribution was largely driven by
growth in crop production, spurred by improved crop yield and reduced post-harvest losses.
The industry sector recorded a contribution of 0.35 percentage point, compared with 0.56
percentage point, in the preceding half year. (Tables 1.2 & 1.3).
Table 1.3: Sectoral Contributions to Real GDP Growth
Source: National Bureau of Statistics

1.2 Inflation
1.2.1 Global Inflation
Global inflation eased to 5.7 per cent in 2024, from 6.7 per cent in 2023, reflecting continued
impact of tight monetary policy, lower commodity prices, and slower wage growth. Inflation
in AEs fell to 2.6 per cent in 2024 from 4.7 per cent in 2023, driven largely by the easing of
inflationary pressures in the United States. In EMDEs, inflation moderated to 5.5 per cent
in 2024, from 8.1 per cent in 2023, propelled largely by tight monetary conditions, lower
energy costs, and broad-based cooling of core inflation. However, in SSA inflation remained
elevated at 18.3 per cent in 2024 from 17.6 per cent in 2023, primarily driven by high energy
prices and currency depreciation across several economies.


Sector
H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
H1 2023
H2 2023
H1 2024
H2 2024
Agriculture

Of
which:
Crop
Production

Industry

Of which: Oil

Manufacturing

Services

Of which: Finance &
Insurance

ICT

Real GDP Growth


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Figure 1.3 Global Inflation

Source: WEO Update, April 2025 *IMF Projection


Table 1.4: Global Inflation

*2025
World Consumer Prices

Advanced Economies

United States

Euro Area

Japan


United Kingdom

Emerging Market and
Developing Economies

Middle East and North Africa

Sub-Saharan Africa

Source: IMF WEO April 2025 *IMF Projection


1.2.2 Domestic Inflation
Inflation remained elevated in the second half of 2024, mainly driven by non-food
components of the Consumer Price Index (CPI) basket. Headline inflation (year-on-year)
rose to 34.80 per cent at end-December 2024, from 34.19 per cent at end-June 2024. The
drivers were the residual impact of Premium Motor Spirit (PMS) subsidy removal and
exchange rate depreciation, exacerbated by persistent structural factors and inflation
expectations.


World Consumer
Prices
Advanced Economies
Emerging Markets
and Developing
Economies
Middle East and
North Africa
Sub-Saharan Africa
Percent

*2025


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Figure 1.4 Inflationary Trends

Source: National Bureau of Statistics

Food inflation (year-on-year) moderated to 39.84 per cent, from 40.87 per cent in the first
half of 2024. However, core inflation rose to 29.28 per cent, compared with 27.40 per cent
in the preceding half, due to high costs of manufacturing inputs.

1.3 Oil Prices
Oil prices fell to US$73.60 from US$83.20 per barrel at end-June 2024. Similarly, Bonny
Light, Brent, and WTI prices declined by 17.25 per cent, 12.82 per cent and 13.13 per cent
to US$73.90, US$74.10 and US$70.80 per barrel, from US$89.30, US$85.00 and
US$81.50 per barrel at end-June 2024, respectively. These movements reflected the
impact of weakening global demand, increased production by OPEC+ and price adjustment
by Saudi Arabia.
Figure 1.5: Oil Prices (US$ per barrel)

Source: OPEC Monthly Oil Market Report
Note: Brent is North Sea Dated


End-Jun 2022
End-Dec 2022
End-Jun 2023
End-Dec 2023
End-Jun 2024
End-Dec 2024
US$ Per Barrel
OPEC Basket
Bonny Light
Brent
West Texas Intermediate


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Table 1.5: Oil Prices (US$ Per Barrel)
Selected Price
Benchmarks

Jun
Dec
Jun
Dec
Jun
Dec
OPEC Basket

Bonny Light

UK Brent

West Texas Intermediate

Source: Reuters
1.4 Food Prices
The Food and Agriculture Organization (FAO) food price index rose by 6.4 points to 127.4
index points, up from 121.0 index points in June 2024. During the review period, all
sub-indices, except cereals and sugar, posted gains.

Figure 1.6: FAO Food Price Index


Source: FAO

Table 1.6: FAO Food Price Index

End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

FAO
Food
Price
Index
(FFPI)

Meat Index

Dairy Index

Cereals Index

Oils Index

Sugar Index

Source: FAO

End-Jun 2022
End-Dec 2022
End-Jun 2023
End-Dec 2023
End-Jun 2024
End-Dec 2024
FAO Food Price Index (FFPI)
Meat Index
Dairy Index
Cereals Index
Oils Index
Sugar Index


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1.5 International Stock Markets
Globally, stock markets were bullish in the second half of 2024, driven largely by strong
corporate earnings, decelerating inflationary pressures and expectations of policy
normalisation (Appendix 1). African and Asian stock markets were bullish while European
and North American stock markets' performance were mixed. The Nigerian stock market
sustained its bullish trend as indicated by the performance of the equities, bonds, and
exchange-traded products segments.
Regional performances of stock markets are reflected in the charts below.
Figure 1.7 Indices of African Stock Markets

Figure 1.8 Indices of North American Stock Markets

Source: Bloomberg


NGX All-Share Index JSE All-Share Index Nairobi NSE 20 Index
EGX CASE 30
GSE All-Share Index
Index Points
End-Jun 2022
End-Dec 2022
End-June 2023
End-Dec 2023
End-June 2024
End-Dec 2024

S&P 500
S&P/TSX Composite Index
Mexican Bolsa
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24


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Figure 1.9 Indices of South American Stock Markets


Source: Bloomberg

Figure 1.11 Indices of Asian Stock Markets

Source: Bloomberg


COLCAP
Bovespa Stock
Merval
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24

FTSE 100
CAC 40
DAX
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24

NIKKEI 225
SHANGHAI SE
BSE SENSEX
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24
Figure 1.10 Indices of European Stock Markets


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
1.6 Foreign Exchange Markets
Major currencies across Africa, North America, South America and Europe depreciated
against the US dollar. In Europe, the Russian Ruble posted the steepest slide, weakening
by approximately 24.27 per cent. This was primarily driven by monetary policy uncertainty,
following indications from the Central Bank of Russia of a possible withdrawal of support
measures for the currency.
In Asia, the Chinese Renminbi continued to face downward pressure, largely owing to a
widening interest rate differential between China and the United States, as the People’s
Bank of China maintained an accommodative stance to stimulate domestic growth. The
depreciation was further reinforced by weak external demand, limited capital account
liberalisation, and rising concerns over structural vulnerabilities.
In Africa, the Egyptian Pound depreciated by 5.52 per cent to EGP50.84/US$ at
end-December 2024, due to persistent foreign exchange shortages and elevated external
debt servicing costs. Similarly, the Nigerian Naira depreciated marginally by 1.73 per cent
to N1,535.82/US$ at end-December 2024, indicating underlying foreign exchange
supply-demand imbalances. However, exchange rate unification and liberalisation reforms
in Nigeria continued to strengthen price discovery mechanisms, improve transparency and
market efficiency (Appendix 2).
1.7 Monetary Policy Rates
Monetary policy stances varied across countries during the review period, reflecting
divergent macroeconomic conditions and policy priorities. In advanced economies, most
central banks including the European Central Bank (ECB), Bank of England (BoE), US
Federal Reserve (Fed), and Bank of Canada (BoC) adopted an accommodative stance by
reducing policy rates to support economic activity. Among the BRICS economies, China
and South Africa eased monetary conditions through rate cuts, while Brazil and Russia
implemented rate hikes in response to inflationary pressures. India, however, maintained a
neutral stance with an unchanged policy rate. In other emerging markets and South
American economies, including Mexico, Chile, and Colombia, central banks reduced policy
rates to stimulate growth. In contrast, monetary authorities in Nigeria raised rates to rein in
inflation, whereas Ghana implemented a rate cut over the same period. On the other hand,
Egypt's policy rate remained unchanged during the period. (Appendix 3).
1.8 External Reserves
The gross external reserves increased by 15.62 per cent to US$40.19 billion, from
US$34.76 billion at end-June 2024, representing 14.1 months of import cover. Analysis
showed that 79.48 per cent of the reserves were held in US dollars, 10.31 per cent in
Special Drawing Rights (SDRs), 8.14 per cent in Renminbi and 2.07 per cent in other
currencies compared with 76.65, 12.16, 9.34 and 1.85 per cent, respectively, in the
preceding period.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Total inflows rose by 42.34 per cent to US$23.60 billion, from US$16.58 billion in the first
half of 2024. This was driven largely by an increase in crude oil-related taxes, royalties and
third-party receipts. Similarly, total outflow increased by 19.02 per cent to US$17.52 billion,
from US$14.72 billion in the first half of the year, driven largely by increases in foreign
exchange (FX) swap payments and third-party payments. Consequently, net flows rose
significantly by 226.88 per cent to US$6.08 billion from US$1.86 billion at end-June 2024.
Figure 1.12 External Reserves (US$ Billion)


Table 1.7: Foreign Exchange Flows through the CBN
Period
First Half
Second Half
Total End December

Inflow US$
Billion
Outflow US$
Billion
Inflow US$
Billion
Outflow US$
Billion
Inflow US$
Billion
Outflow
US$ Billion
Net Flow
US$ Billion


18.34
20.47


(2.13)


Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
2. DEVELOPMENTS IN THE FINANCIAL SYSTEM
2.1. Monetary and Credit Developments
Reserve money grew by 30.57 per cent, driven by 34.39 per cent and 29.83 per cent rise
in currency-in-circulation (CIC) and liabilities to other depository corporations (ODCs),
respectively. A disaggregation of CIC revealed an increase in the value of notes and coins
by 34.55 per cent to ₦5,422.85 billion, while eNaira transactions declined by 0.36 per cent
to ₦18.31 billion. The growth in notes and coins was due largely to increased cash demand
by economic agents.
Table 2.1: Components of Reserve Money (N Billion)

H1 2020
H2 2020
H1 2021
H2 2021
H1 2022
H2 2022
H1 2023
H2 2023
H1 2024
H2 2024
Reserve Money

Currency-InCirculation

Of
which
Naira & Coins

eNaira

Liabilities
to
ODCs

Reserve
Money
(% Growth)


1.16

30.57


Broad money (M3) grew by 11.72 per cent, compared with the provisional benchmark of
15.60 per cent. The rise in M3 was driven by 38.41 per cent and 3.86 per cent increases in
net foreign assets (NFA) and net domestic assets (NDA), respectively. The growth in NFA
was due largely to 26.61 per cent rise in claims on non-residents. Similarly, the increase in
NDA was due to a rise in net claims on government and claims on “other sectors” by 13.40
per cent and 6.60 per cent, respectively.

Table 2.2: Growth Rates of Monetary Aggregates
% Change
H1 2020
H2

H1

H2

H1

H2

H1

H2

H1

H2

Net Foreign Assets

Net Domestic Assets

Domestic Claims

Net Claims on Central
Government

Claims on Other Sectors

Other Items (Net)

Currency Outside
Depository Corporations


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Transferable Deposits

Narrow Money Supply
(M1)

Other Deposits

Monetary Liabilities
(M2)

Total Monetary
Liabilities (M3)


The growth in total monetary liabilities was on account of 35.21 per cent, 15.27 per cent,
2.06 per cent growth in currency outside depository corporations, other deposits and
transferable deposits, respectively. The significant growth in other deposits was attributed
to the rise in foreign currency deposits of depository corporations, due to the revaluation
effect triggered by reforms in the foreign exchange market. In terms of contribution to
growth in broad money liabilities, other deposits contributed the most at 9.73 percentage
points, currency outside depository corporations contributed 1.32 percentage points, and
transferable deposits contributed 0.67 percentage point.

2.1.1. Market Structure of the Banking Industry
The banking system remained highly competitive, as depicted by the Herfindahl-Hirschman
Index1 (HHI). The HHI, in terms of deposits and assets, stood at 1,010.94 and 1,012.92,
compared with 1,008.86 and 997.60 in the preceding half year, respectively. The
concentration ratio of the six largest banks (CR6) in terms of deposits and assets rose to
71.49 per cent and 70.14 per cent from 70.28 per cent and 69.99 per cent at end-June
2024. In addition, the shares of individual banks in total deposits and assets ranged from
0.09 to 19.36 and 0.08 to 18.77 per cent, respectively.


1 HHI values range from 100 (highly competitive) to 10,000 (monopoly)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 2.1 Herfindahl-Hirschman Index and Concentration Ratios of the Banking Industry Assets
and Deposits


2.1.2. Sectoral Distribution of Credit
Total credit to key sectors of the economy increased by 6.29 per cent to ₦59,216.95 billion,
from ₦55,713.80 billion at end-June 2024. Credit utilisation across all sectors recorded
mixed performance, as agriculture and services sectors increased by 16.95 per cent and
13.90 per cent, respectively, while the industry sector declined by 3.66 per cent. A
disaggregation of the sectoral credit utilisation revealed that the services sector, at
₦32,691.09 billion, accounted for the largest share (55.2 per cent), followed by industry,
₦23,671.35 billion (40.0 per cent) and agriculture, ₦2,854.51 billion (4.8 per cent).

Table 2.3: Sectoral Credit Utilisation
ITEM
End-Dec

End-Jun

End-
Dec24
Percentage Share in
Total
% Change
Between

₦’’Billion
₦’’Billion
₦’’Billion
Dec-

Jun-

Dec-

(1) & (2)
(2) & (3)


[a] Agriculture

[b] Industry

of which Manufacturing

[c] Services

of which Finance, Insurance
& Capital Market

Trade/General Commerce

TOTAL PRIVATE SECTOR
CREDIT
44,536.13
55,713.80
59,216.95

25.10
6.29

2.1.3. Consumer Credit
Consumer credit rose by 3.70 per cent to N4,903.39 billion, compared with N4,728.23 billion
at end-June 2024. The share of consumer credit to total claims on private sector stood at
8.28 per cent, relative to 8.49 per cent in the preceding half year. A breakdown of consumer

Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24
HHI
Concentration Ratio
CR Deposits
CR Assets
CR (Largest -Deposits)
CR (Largest -Assets)
HHI (Deposits)
HHI (Assets)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
credit shows that personal loans and retail loans accounted for 78.55 per cent and 21.45
per cent, compared with 73.35 per cent and 26.65 per cent, respectively, at end-June 2024.


Figure 2.2 Consumer Credit

2.2. Composition of Banks and Other Financial Institutions
The number of licensed Commercial, Merchant and Non-Interest Banks (CMNBs)
increased to 38, following the issuance of licences to three regional banks. The licensed
CMNBs comprised 28 commercial, six merchant and four non-interest banks (NIBs).
Seven commercial banks with international authorisation had 56 cross-border banking
subsidiaries and one branch. The number of representative offices was five, bringing the
total number of offshore affiliates to 61.
A total of 13 Microfinance Banks (MFBs) and six Finance Companies (FCs) were licensed
during the review period. The total number of Other Financial Institutions (OFIs) was 2,496
at the end of the reporting period.


Table 2.4: Composition of Banks and Other Financial Institutions
S/N
Type
End-Jun 2024
End-Dec 2024
Change

CMNBs
Commercial Banks:

International

National

Regional
Merchant Banks:

National
Non-Interest Banks:

National

-
-

-

-
A
Sub-total


7.5

8.5


H1 2022
H2 2022
H1 2023
H2 2023
H1 2024
H2 2024
Per cent (%)
₦'Billion
Consumer Credit (₦'Billion)
Ratio of Consumer Credit to Claims on Private Sector


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Microfinance Banks:
National
State
Tier 1 Unit
Tier 2 Unit

-
-

Bureaux De Change
1629*

-

Finance Companies

Development
Finance
Institutions

-

Primary Mortgage Banks

-
B
Sub-total
2,594
2,613

Financial Holding Companies

-

Representative Office

-

Payment Service Banks

-
C
Sub-total

-

Grand Total
2,607
2,626

*Revised figure

2.3. Financial Markets

Developments in the global financial markets were shaped by a mix of factors, including
geopolitical risks, trade frictions, fluctuations in commodity prices, elevated debt levels and
technological innovations. The monetary policy stance across many AEs, and EMDEs to
support price stability resulted in diverse yield adjustments in the bond market, while most
currencies depreciated against the US dollar. The performance of the stock market, gauged
by the Morgan Stanley Capital International (MSCI) world index, declined as investors
flocked to safe-haven assets.

The Nigerian financial markets reflected structural adjustments, attributed largely to foreign
exchange market initiatives of the Bank. Despite macroeconomic headwinds, the markets
were broadly stable and resilient, underpinned by proactive regulatory oversight as well as
sustained reforms aimed at enhancing market transparency, promoting ethical market
conduct and fostering investor confidence.
2.3.1. Money Market
The Bank sustained liquidity management strategies, including Open Market Operations
(OMO) auctions, discount window operations, FX market interventions, and cash reserve
ratio (CRR) adjustments to manage liquidity and rein in inflation. Consequently, liquidity
conditions remained stable as the market rates were well-anchored by the policy rate.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
2.3.1.1.
Interbank Market Rates
The interbank money market remained active, dominated by collateralised transactions.
Interbank money market rates trended upward in the review period, compared with the
preceding period. The factors that impacted the market included net fiscal flows, CRR
maintenance operations, OMO, and operational changes to the foreign exchange market.
In the review period, rates were within the band of the policy rate.

The open-buy-back (OBB) weighted daily average rate opened on July 1, 2024, at 27.08
per cent, compared with 13.85 per cent on January 2, 2024. The rate peaked at 37.34 per
cent on August 8, moderated to 19.21 per cent on August 30, and thereafter trended
upwards to close at 27.20 per cent on December 30, 2024, compared with a closing rate of
13.83 per cent on June 30, 2024. The daily OBB rate ranged between 19.21 and 37.34 per
cent, compared with 4.29 and 32.25 per cent in the first half of 2024.

In the unsecured segment of the market, the weighted daily average rate opened at 14.00
per cent on July 1, 2024, lower than 15.75 per cent recorded on January 3, 2024.
Thereafter, the rate peaked at 36.00 per cent on July 23, moderated to 19.00 per cent on
August 29, and closed at 26.50 per cent on December 27, 2024. The inter-bank call rates
ranged from 19.00 to 36.00 per cent, compared with 4.29 to 32.25 per cent in the first half
of 2024.

The monthly average OBB and inter-bank call rates were 29.75 per cent and 29.31 per cent
in December 2024, compared with 26.64 per cent and 25.13 per cent in June 2024. The
upward trajectory was largely influenced by the tight monetary policy stance.

Volatility in the OBB rate declined to 0.26 percentage point from 1.08 percentage points in
the preceding half year. Similarly, at the inter-bank call segment, volatility declined to 1.06
percentage points, from 1.94 percentage points in the preceding half. These developments
reflected increased stability, attributed largely to the positive effect of market reforms.


Figure 2.3 Volatility in Open-Buy-Back Rates


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 2.4 Volatility in Interbank Call Interest Rates


Figure 2.5 Money Market Rates


2.3.1.2.
Deposit and Lending Rates
During the review period, the weighted average prime and maximum lending rates
increased due to a sustained tight monetary policy stance. The rates rose by 2.08
percentage points and 1.50 percentage points to 17.33 per cent and 29.88 per cent,
respectively, above the levels in the preceding half year.
Similarly, weighted average deposit (demand, savings and term) rate increased by 0.46
percentage point to 5.55 per cent from 5.09 per cent in the preceding half year.
Consequently, the spread between the average maximum lending rate and the weighted
average deposit rate widened by 1.18 percentage points to 24.47 percentage points from
23.29 percentage points in the preceding half year.


Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24
Inter-Bank Call

Open Buy Back

MPR

SLF

SDF


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 2.6 Interest Rates Spread


2.3.1.3.
Nigerian Treasury Bills
The value of the NTBs for 91-, 182- and 364-day tenors offered and allotted in the second
half of 2024 was ₦5,008.12 billion apiece, a decrease of 40.33 per cent below the level in
the preceding half year.
Similarly, total subscriptions decreased by 43.14 per cent to ₦10,921.51 billion. Thus, the
bid-cover ratio in the second half of 2024 was 2.18, compared with 2.29 in the preceding
half of 2024. Although the bid-cover ratio declined, it remained reflective of strong investor
sentiment and demand.
The average stop rates were higher at 17.58, 18.22, and 21.38 per cent, compared with
14.69, 15.69, and 19.02 per cent for the 91-day, 182-day, and 364-day tenors, respectively,
in the preceding half-year.

Figure 2.7 Primary Market: Nigerian Treasury Bills Allotment

H1 2022
H2 2022
H1 2023
H2 2023
H1 2024
H2 2024
Percentage point
SPRD (MLR-Weighted average savings rate)
SPRD (MLR-Weighted average deposit rate)
₦6,124.85
bn,
72.98%
₦1,894.00
bn, 22.57%
₦290.23b
n, 3.46%
₦83.38...
End-June, 2024
DMBs
MBs
Mandate & Internal Customers
CBN Branches
₦2,458.11
bn 49.08%
₦1,471.67 bn, ...
₦650.96
bn, 13.00%
₦427.38
bn, 8.53%
End-Dec, 2024
DMBs
MBs
Mandate & Internal Customers
CBN Branches


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 2.8 Primary Market: NTBs Transactions

The outstanding NTBs stood at ₦12,351.12 billion, an increase of 4.60 per cent from
₦11,808.18 billion at end-June 2024. Commercial banks remained the dominant holders of
NTBs, accounting for 64.00 per cent of the total in the review period.

Figure 2.9 Holdings of NTBs Outstanding (Per cent and ₦’Billion)


2.3.2. Nigerian Foreign Exchange Market
The total foreign exchange sales by the Bank amounted to US$3.18 billion, compared with
US$1.47 billion in the first half. Furthermore, the Bank purchased US$2.68 billion, resulting
in a net sale of US$0.50 billion, compared with US$0.82 billion in the first half.
The intervention was to enhance market liquidity as part of a broader strategy aimed at
stabilising the domestic currency. There was no new transaction at the FX forwards
segment at end-June 2024 and end-December 2024.


H12022
H22022
H12023
H22023
H12024
H22024
Per cent
N'billion
Offer (₦'B)
Subscription (₦'B)
Maturities (₦'B)
Ave. Rates %


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 2.10 Transactions at the Nigerian Foreign Exchange Market


2.3.2.1.
Foreign Exchange Rate
The exchange rate at the Nigerian Foreign Exchange Market (NFEM) opened at
₦1,509.69/US$ on July 1, 2024, and closed at ₦1,535.82/US$ at December 31, 2024,
reflecting a depreciation of 1.73 per cent, compared with 60.83 per cent in the preceding
half year. The relative stability during the review period was due largely to the introduction
of the Electronic Foreign Exchange Matching system (EFEMS) anchored on the Bloomberg
Matching (BMatch) solution, signalling a movement from a quote-based to an order-based
system. In addition, the Bank released the exposure draft of the Foreign Exchange Code
(FX Code). These measures significantly promoted market-based price discovery, market
transparency, FX market liquidity, ethical market conduct and investor confidence.

Figure 2.11 Monthly Average Rates at the NFEM


H1 2024($' million)
H2 2024($' million)
Sales
Purchases

Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24
₦/US$


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
2.3.2.2.
Over-the-Counter Foreign Exchange Futures
There were no new over-the-counter (OTC) FX Futures contracts; however, matured
contracts decreased to US$78.70 million compared with US$3,031.83 million at end-June
2024. Thus, the outstanding contracts decreased to US$88.05 million, from US$166.75
million at end-June 2024.
2.3.3. Capital Market
The market sustained a bullish trend in the second half of 2024 as indicated by the
performance of the equities, collective investment schemes and exchange-traded products
segments. The positive performance was attributed to the banking sector recapitalisation
exercise, listing of new firms on the Exchange and increased participation of domestic
investors.
The ASI increased by 2.87 per cent to 102,926.40 from 100,057.49 at end-June 2024.
Overall, the total YTD return for 2024 was 37.65 per cent, marking the stock market's fifth
consecutive year of growth. On a year-on-year basis, the NGX-ASI outperformed indices
such as NASDAQ, S&P 500, FTSE 100, DAX, Nikkei and JSE, but trailed indices of some
African countries, such as Ghana (GSE-Composite), Malawi (MASI) and Zambia (LASI).
Similarly, collective investment schemes expanded significantly, with net asset value
reaching ₦3,833.33 billion, from ₦2,960.18 billion at end-June 2024. The Africa Exchange
(AFEX) and Lagos Commodity Futures Exchange (LCFE) also recorded strong gains.
2.3.3.1.
New Issues of Securities
New issues of securities in the capital market witnessed a shift during the review period,
driven by preference for equity-based financing, relative to debt-based financing. In the
equities segment, the number of public offers increased to three from one, valued ₦612.44
billion and ₦97.50 billion, first half of 2024. Similarly, rights issues experienced significant
growth as the number of issues grew to 11 from three, valued ₦2,066.78 billion from
₦621.32 billion in the preceding half year.
The number of private placements, however, decreased to two from six, valued ₦75.34
billion from ₦149.56 billion in the preceding period. Consequently, the total value raised
through equities increased substantially to ₦2,754.57 billion from ₦868.39 billion recorded
in the first half of 2024.
In contrast to the equities market, the debt market experienced a downturn, owing to
portfolio switch driven by evolving investor sentiment, tight monetary policy stance and
changing market conditions. The number of debt issues declined by 80.00 per cent, to two
from 10 in the preceding half year. In terms of value, debt issuance decreased by 99.51 per
cent to ₦18.50 billion from ₦3,811.16 billion in the first half year. The decline was attributed
to non-issuance of FGN bonds and Eurobonds during the review period. There were two
issues of corporate bonds valued ₦18.50 billion compared with one issue valued ₦46.00
billion in the preceding half-year.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 2.5: New Issues in the Capital Market

Type
Number of Issues
Value of Issues (N’Bn)

End-Dec

End-June

Change %
End-Dec

End-June

Change %
IPO

0.00
0.00
100.00
Public Offer/Offer for Sale


Private Placements


Rights


Total Equities


Corporate Bonds


Sub-national Bonds

0.00
0.00

FGN Bonds


Eurobond

0.00
0.00

Total Debt


Total (Equities & Debt)


Source: SEC, DMO


2.3.3.2.
Equities Market
The NGX All-Share Index (ASI) rose by 2.87 per cent, closing at 102,926.40 points at
end-December 2024. Equities market capitalisation increased by 10.89 per cent to
₦62,763.28 billion, underscoring investor confidence driven by strong corporate earnings
and favourable market conditions.
The total value of stocks traded at the market grew by 3.15 per cent to ₦1,400.73 billion in
1,192,388 deals, compared with ₦1,444.93 billion in 1,189,829 deals in the first half.
Furthermore, the total volume of stocks traded rose to 68.20 billion from 64.44 billion in the
first half of 2024.
The bullish sentiment was reflected in strong performances across several sectors. The
NGX Banking, Insurance, Oil & Gas, and Consumer Goods Indices increased by 30.63,
83.83, 88.25 and 9.49 per cent, respectively. However, the NGX Industrial Index declined
by 23.93 per cent to 3,572.17 points. The NGX Sovereign Bond Index also decreased by
21.47 per cent, reflecting rising interest rates and decline in new debt issuance, particularly
in FGN bonds.

Table 2.6: Nigerian Exchange Limited Indices, ASI and Equity Market Capitalisation
Description
End-Jun

(a)
End-Dec

(b)
End-Jun

(c)
End-Dec

(d)
Change
%
(c&d)
NGX ASI (Points)

Equity Market Cap (N’trn)
33.20
40.92
z56.61
62.77
10.89
NGX Main-Board Index


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
NGX 30 Index

NGX CG Index


26.29
NGX Premium Index


-1.46
NGX Banking Index


30.63
NGX Pension Index


20.17
NGX Insurance Index


83.83
NGX ASeM Index


5.26
NGX-AFR Bank Value Index


30.55
NGX AFR Div Yield Index


56.23
NGX Meri Growth Index


41.39
NGX Meri Value Index


48.84
NGX Consumer Goods Index

NGX Oil & Gas Index


88.25
NGX Lotus Islamic Index


10.63
NGX Industrial Index


-23.93
NGX Growth Index


39.21
NGX Sovereign Bond Index


-21.47
NGX Pension Board

1,308.54
1,771.41
1,826.89

3.13
Source: NGX Reports


2.3.3.3.
Foreign and Domestic Participation
Foreign portfolio inflows to the equities market totalled ₦167.34 billion, representing a 26.95
per cent decrease from ₦229.07 billion in the first half. Also, foreign portfolio outflows
declined by 53.69 per cent to ₦144.21 billion from ₦311.41 billion in the preceding half.
This resulted in a net inflow of ₦22.13 billion, compared with a net outflow of ₦82.34 billion
in the first half. The decline in foreign portfolio flows reflects earlier global monetary
tightening and rising interest rates in advanced economies, which made developed markets
more attractive. However, the onset of global monetary easing around mid-2024 may have
contributed to the moderation in outflows.
The decline in foreign portfolio flows reflects the earlier phase of global monetary tightening
and the associated rise in interest rates across advanced economies, which enhanced the


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
attractiveness of developed markets. However, the commencement of global monetary
easing around mid-2024 may have contributed to a subsequent moderation in capital
outflows.

Equity transactions rose by 14.55 per cent to ₦2,982.87 billion from ₦2,604.10 billion in the
preceding half. Of the total equity transactions, domestic transactions dominated market
activities, accounting for 89.56 per cent, compared with 79.25 per cent in the first half.
Meanwhile, foreign transactions accounted for 10.44 per cent, compared with 20.76 per
cent in the preceding half.


Table 2.7: Foreign and Domestic Portfolio Participation in Equities Trading
Transaction Type (N’b)
Jan-Dec

(a)
Jan-Dec

(b)
Jan-Jun

(c)
Jul-Dec

(d)
%
change
(c&d)
Total Equity transactions

Foreign portfolio transaction

Foreign (%)


Domestic transactions

Domestic (%)


Foreign inflow

Foreign outflow

NGX-ASI

Source:NGX


2.3.3.4.
National Association of Securities Dealers OTC Market
The National Association of Securities Dealers (NASD) OTC Market experienced
substantial growth at end-December 2024 as the Unlisted Securities Index rose significantly
by 98.95 per cent, reaching 3,049.90 points, from 1,533.00 points at end-June 2024. This
growth demonstrated a strong upward trend in the market. However, market capitalisation
declined by 50.22 per cent to ₦1,045.65 billion from ₦2,100.74 billion at end-June 2024,
driven by the delisting of two large-cap companies on the NASD.
This contrasts with a sharp rise in trading activity, as the number of deals surged by 177.34
per cent, from 3,176 to 8,808.22. Similarly, the volume traded increased by 208.80 per cent,
from ₦961.27 million to ₦2,968.38 million.
The total value of transactions also saw impressive growth, rising by 381.12 per cent to
₦104,008.30 million, compared with ₦21,617.76 million at end-June 2024. This increase in
transaction value highlights a surge in market activity, despite the decline in market
capitalization. The significant rise in the number of deals and volume traded indicated
heightened market participation and investor interest, even as the overall market
capitalisation contracted by year-end.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 2.8: Transactions on the NASD OTC Market
OTC Market
End-Jun 2024
End-Dec 2024
% change
Unlisted Index (Points)
1,533.00
3,049.90
98.95
Market cap (N'bn)
2,100.74
1,045.65
-50.22
Number of Deals
3,176.00
5,632.22
77.34
Volume traded (N'mn)
961.27
2,007.11
108.08
Total value (N'mn)
21,617.76
82,390.53
281.12
Source: NASD


2.3.3.5.
Debt Market
Total public debt outstanding stood at ₦144,665.45 billion (52.13 per cent of GDP),
repre-senting a 7.72 per cent increase above the level at end-June 2024. The rise was due
to the revaluation effects arising from exchange rate depreciation and new borrowings to
fi-nance the 2024 budget deficit. A breakdown of the total public debt showed that domestic
debt accounted for 51.41 per cent, while external debt constituted 48.59 per cent.

The domestic debt stock comprised instruments issued by the FGN and sub-nationals. The
stock of domestic debt outstanding stood at ₦74,377.92 billion at end-December 2024, with
the FGN debt accounting for 94.67 per cent of the total. This indicated an in-crease of 4.43
per cent from ₦71,224.99 billion at end-June 2024.

Table 2.9: Outstanding Debt Instruments
Instrument
End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

End-June

End-Dec

%
Change
(June -
Dec
2024)
Proportio
n of Total
(Dec2024)
(a) Federal
Governme
nt

Nig.
Treasury
Bills

FGN
Bonds

FGN
Savings
Bonds

FGN Sukuk

FGN Green
Bonds


0.01
Nig.
Treasury
Bonds


FGN
Promissory
Notes

(b) SubNational

Total
Domestic
Debt


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
(c)
External

Multilateral

Bilateral

Commercia
l

Syndicated
Loan

Total Debt


2.3.3.6.
New Issues, Maturities and Outstandings
2.3.3.6.1. FGN Bonds
FGN Bonds valued ₦1,100.00 billion were offered in the review period, lower than
₦4,660.00 billion recorded in the preceding half year. Similarly, public subscriptions and
allotments decreased to ₦2,192.45 billion and ₦1,711.90 billion, compared with ₦4,899.14
billion and ₦3,994.66 billion, respectively, in the first half.
The yield curve was downward sloping at end-December 2024, indicating investors’
expectation of declining long-term inflation and policy rates.
Figure 2.12 Yield Curve
Source: FMDQ-OTC Plc

2.3.3.6.2. FGN Savings Bonds
FGN savings bonds worth ₦22.74 billion, comprising 2-year and 3-year tenors, were offered
and allotted in the review period, reflecting an increase of 4.26 per cent from ₦21.81 billion
offered in the preceding half year. The coupon rates for the 2-year and 3-year tenors ranged
from 1.2044 per cent to 17.4800 per cent and 2.3672 per cent to 18.4800 per cent,
respectively, compared with a range of 11.0330 per cent to 17.4140 per cent and 12.0330
per cent to 18.4140 per cent in the preceding half year. FGN savings bond maturities
amounted to ₦1.37 billion, while the outstanding bonds stood at ₦72.87 billion at endDecember 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as


2.3.3.6.3. FGN Green Bonds
The outstanding stock of green bonds remained unchanged at ₦15.00 billion at
end-December 2024, as in the preceding half year. The 14.50 per cent FGN 7-year Green
Bonds (series II) is expected to mature in June 2026.

2.3.3.6.4. FGN Sukuk
There was no FGN Sukuk issued or allotted in the review period, the same as at end-June
2024. However, sukuk worth ₦100.00 billion matured. Consequently, FGN sukuk valued
₦992.56 billion was outstanding, compared with ₦1,092.56 billion at end-June 2024.

2.3.3.6.5. Sub-National Bonds
There was no new issue of sub-national bonds in the review period. However, the
aggregate value of sub-national bonds decreased by 3.96 per cent to ₦350.54 billion from
₦365.00 billion at end-June 2024, due mainly to the redemption of ₦14.26 billion bonds by
Lagos and Kogi State governments.

2.3.3.6.6. Corporate Bonds
The total value of corporate bonds issued was ₦68.22 billion, while ₦52.90 billion were
redeemed during the review period. Consequently, corporate bonds valued ₦1,662.47
billion were outstanding, compared with ₦1,647.15 billion at end-June 2024.

2.3.3.7.
Bonds - Secondary Market
The bond market recorded a mixed performance during the review period as FGN bond
market capitalisation declined slightly to ₦44.93 trillion, from ₦46.13 trillion in June 2024.
State and Local Government bonds remained unchanged at ₦348.99 billion, reflecting
in-activity in the sub-national bond segment. Corporate bond market capitalisation
increased marginally to ₦1.19 trillion from ₦1.17 trillion, demonstrating modest sentiment
in corporate debt instruments. Overall, the total bond market capitalisation decreased to
₦46.47 trillion in December 2024 from ₦47.65 trillion in June 2024.
Investor participation in NGX FGN bonds Market declined, as reflected across major
activity indicators. The number of deals dropped to 702 from 792, representing a decline of
11.36 per cent and suggesting reduced trading interest. Similarly, the trading volume fell by
10.68 per cent to 2,934,505 units from 3,285,343 units, indicating a contraction in investor
participation. The total value of transactions also declined by 11.35 per cent, to ₦2.89 billion
from ₦3.27 billion, reinforcing the trend of waning market activity. However, there was no
trading activity for promissory notes, commercial papers, agency bonds, and money market
derivatives during the review period, indicating limited investor appetite for these segments.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as


Table 2.10: Market Capitalisation (Debt Securities/Bonds)

End-Jun 2024
End-Dec 2024
Supra-National
Federal
46,130.21
44,930.39
State and Local
349.00
349.00
Corporate
1,171.32
1,186.96
Total Mkt Cap (Bonds)
47,650.53
46,466.35
NGX FGN Bond Market activity
Deal

Volume
3,285,343
2,934,505
Value
3.27
2.89

The FMDQ Exchanges Limited total turnover grew by 49.26 per cent to ₦65.90 trillion from
₦44.15 trillion at end-June 2024. The number of deals also rose by 8.57 per cent to 83,743
compared with 77,134, in the preceding half year, indicating increased market participation
and liquidity.
The fixed-income market performance was mixed in the review period. FGN Bonds
re-mained dominant, as number of deals and traded value increased by 19.64 per cent to
4,731 and 25.46 per cent to ₦2,628.73 billion from ₦2,103.53 billion, respectively.
The val-ue of NTBs traded increased by 149.63 per cent to ₦6,550.38 billion from
₦2,627.62 bil-lion. Similarly, OMO Bills, Sukuk and Eurobonds rose by 74.96, 88.91 and
90.96 per cent, to ₦12,564.68 billion, ₦59.00 billion and ₦113.69 billion from ₦7,195.26
billion, ₦31.29 billion and ₦59.48 billion, respectively. Conversely, short-term bonds and
unsecured placements/takings declined by 26.22 per cent and 93.38 per cent. There was
no trading activity in the corporate bonds, CBN special bills, promissory notes, agency
bonds, state/municipal bonds, supranational bonds, green bonds, commercial papers, and
money market derivatives segments of the market during the review period.
The performance of the foreign exchange products and derivatives market was equally
mixed. Foreign exchange products recorded a 48.87 per cent increase in traded value to
₦18.75 trillion, while foreign exchange derivatives declined by 54.43 per cent in value.
Re-purchase Agreements/Buy-Backs remained a key driver, increasing by 45.41 per cent
to ₦23.65 trillion. The overall increase in market turnover highlights strong liquidity
conditions, driven by activity in government securities such as FGN Bonds, NTBs, and
OMO Bills.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as


Table 2.11: FMDQ Market Size
Bonds
Number of Deals Traded
Face Value of Traded Securities (Nbn)
End-Jun

End-Dec

% change
End-Jun 2024
End-Dec 2024
%
Change
Federal
Government Bonds

Sukuk


Eurobonds


Short-term Bonds


Treasury Bills (NTB )

OMO Bills

Unsecured
Placements/ Taking


Foreign
Exchange
Products

Repurchase
Agreement/Buy
Backs

Foreign
Exchange
Derivatives


Promissory Notes


Total


2.3.3.8.
Mutual Funds
The Net Asset Value (NAV) of registered funds stood at ₦3,978.26 billion, reflecting a
significant rise of 28.82 per cent from ₦3,088.00 billion at end-June 2024. The growth was
largely attributed to increase in Money Market Funds (57.83 per cent), Infrastructure Funds
(25.18 per cent) and Dollar Funds (18.59 per cent).
Money market funds recorded the largest gain, reflecting investors' preference for low-risk,
and liquid instruments in response to market volatility, while growth in Infrastructure Funds
indicated growing interest by some investors in long-term development projects.
Furthermore, Dollar Funds increased, due largely to investors hedging against exchange
rate risk. Other categories such as Equity-Based, Real Estate, Balanced, Ethical and
Shariah Compliant funds recorded moderate to strong increases.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Conversely, Bond/Fixed Income Funds contracted by 15.65 per cent, due largely to a shift
in investor sentiment to short-term debt from long-term instruments.
The robust growth in the collective investment schemes contributed to financial stability by
enhancing liquidity, promoting diversified investment portfolios, and mitigating risks
associated with market volatility. By providing a stable channel for capital allocation and
risk management, these funds helped foster a resilient financial system to support
sustainable economic growth.
Table 2.12: Collective Investment Schemes (₦’Billion)
Products
End-Dec 2023
End-Jun 2024
End-Dec 2024
Change (%)

(a)
(b)
(c)
(b&c)
Ethical Funds

Shariah Compliant Funds

Dollar Funds

Bond/Fixed Income Funds

Equity Based Funds

Real Estate Funds

Money Market Funds

Balanced Based Funds

Exchange Traded Funds

Infrastructure Funds

Specialised Funds

Total

Source: SEC
The Exchange Traded Funds (ETFs) on the Nigerian Exchange market demonstrated
modest growth. The total Net Asset Value (NAV) increased by 4.96 per cent, rising to
₦12.54 billion from ₦11.98 billion at end-December 2024, indicating increased investor
interest and asset accumulation. The most significant growth was observed in the number
of unit holders, which rose by 11.11 per cent, to 2,470 from 2,223 within six months,
indicating broader market participation and improved retail uptake. Similarly, the number of
units in circulation grew marginally by 0.47 per cent, from approximately 290 million to 291.4
million units.
Table 2.13: NGX Exchange-Traded Products

Net Asset Value

Unit Holders

Number of Units


End-June

End-Dec

Change
(%)

EndJun

EndDec

Change
(%)

End-Jun 2024
End-Dec 2024
Change
(%)

Exchange
Traded
Funds*


291,373,238.19
0.48
Source: NGX


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
*ETPs include Exchange Traded funds and Exchange Traded Futures

2.3.4. Commodities Market
The Nigerian commodities market expanded in the review period, enhancing liquidity,
improving price discovery, and promoting financial stability. Increased market participation
and higher transaction volumes across the exchanges indicate growing investor confidence
and stronger integration between the real sector and financial markets.

2.3.4.1.
AFEX Commodities Exchange
Transactions on the Africa Exchange experienced a significant contraction in the second
half of 2024. Total trade volume fell by 44.37 per cent, while value dropped by 46.6 per
cent, compared to the first half of 2024. Most commodities recorded sharp declines in both
volume and value, driven by insecurity, poor logistics, and weak market linkages.
Cashew, cocoa, sesame, and soyabean trade volumes declined by over 85.00 per cent,
with cashew and sesame nearly disappearing from the market. Paddy rice and wheat also
recorded a steep decline. In contrast, Sorghum was the only commodity to post gains, with
volume and value rising by 5.65 per cent and 62.60 per cent, respectively, indicating
resilient demand. Maize maintained a stable volume but recorded 18.50 per cent increase
in value, owing to improved pricing. Meanwhile, fixed income trading also contracted by
36.60 per cent and 59.30 per cent in volume and value, reflecting reduced investor activity.
The market’s overall downturn highlights urgent needs for improved aggregation systems,
enhanced investor confidence, and strategic interventions to revitalize Nigeria’s
commodities ecosystem.
Table 2.14: Transactions on AFEX (N’M)

H2 2023
H1

H2

H2 2023
H1 2024
H2 2024


Total Volume Million/KG
% hange
Total Value ₦ (‘M)
% change
Cashew Nut

Cocoa

Ginger
0.1


52.29


Maize

Paddy Rice

Sesame

Sorghum

Soyabean


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Wheat
2.78


1,358.80


Fixed
Income

Total

Source: AFEX
2.3.4.2.
Lagos Commodities and Futures Exchange
The Exchange experienced substantial growth in both Eko Gold Coin and Grains, reflecting
increased investor participation and improved trading infrastructure. The volume of
Eko Gold Coin traded rose sharply from 547 grams to 1,939 grams, a remarkable 254.48
per cent increase. In parallel, its value increased from ₦44.58 million to ₦116.90 million,
reflecting a 162.21 per cent rise. This indicated strong investor demand for gold, driven by
inflation hedging and enhanced confidence in the digital gold trading platform.
The volume of grains traded increased to 521.021 metric tons from 293.73 metric tons
recorded in the first half of the year, indicating a 77.37 per cent rise. Correspondingly, the
value of grains traded rose by 88.19 per cent, from ₦92.93 million to ₦174.86 million. This
suggests greater market activity, potentially influenced by improved aggregation, seasonal
harvest patterns, and enhanced participation in the exchange.
Overall, the period saw significant capital inflows and transaction volumes in these asset
classes, reinforcing the growing momentum in Nigeria’s structured commodities trading
ecosystem.
Table 2.15: Lagos Commodities and Futures Exchange Transactions

End-Dec

End-Jun

End-Dec

End-Dec

EndJun

EndDec

Total Volume
% change
Total Value ₦ (‘M)
% change
Eko Gold Coin (g)


Grains (MT)

Source: SEC

2.3.4.3.
Nigeria Commodity Exchange
Trading activity recorded a moderate uptick, with the number of deals increasing by 29.41
per cent to 22, from 17 in the preceding period, indicating growing participation. Similarly,
the volume traded and value of transactions rose slightly by 3.76 per cent and 6.28 per
cent, respectively.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 2.16: Nigeria Commodities Exchange (NCX) Transactions
Period
End-June 2024
End-Dec 2024
% Change
No. of Deals

29.41
Volume Traded (MT)
3,884.099
4,029.84
3.76
Value (₦)
1,857,048,123.00
1,973,795,223.06
6.28
Source: SEC
The overall expansion of Nigeria’s commodity exchanges in the review period further
highlighted their increasing role in deepening financial markets, improving risk
management, and promoting economic resilience.

2.4. Securities and Exchange Commission Regulatory and Supervisory Activities
2.4.1. Registrations
The Commission cleared the backlog of capital market operator applications by integrating
Fintechs through the Regulatory Incubator and Accelerated Regulatory Incubator
Programmes.

2.4.2. Onsite Inspection
The Commission sustained its Risk-Based Supervision (RBS) examination of entities within
the holding companies in collaboration with other financial system regulators. Five
intermediaries of three holding companies were examined during the review period, and
appropriate regulatory measures were taken to address observed infractions.


2.5. Real Sector Interventions
The Bank sustained its advisory role while intensifying efforts towards the recovery of
outstanding intervention funds. Total recoveries from across all intervention projects
amounted to ₦394.24 billion, reflecting a 2.90 per cent increase compared to ₦383.24
billion recorded in the first half of 2024. The recoveries were from Agricultural Policy
Support, Agricultural Credit Guarantee Scheme, Industrial Policy Support, Export Policy
Support, Energy Policy Support and Other Policy Support Programmes.
Furthermore, disbursements to legacy interventions in the energy and infrastructure sectors
reached ₦43.54 billion, a notable rise from ₦15.59 billion in the preceding period,
underscoring the Bank’s continued commitment to strategic real sector support and
financial stability.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Table 2.17: Summary of Real Sector Interventions

ITEM
End-Jun 2024
End-Dec 2024
S/N
Intervention
Disbursement
Repayment
(₦' Billion)
Disbursement
Repayment
(₦' Billion)
(₦' Billion)
(₦' Billion)

Power and Airline Intervention Fund (PAIF)


Nigerian
Electricity
Market
Stabilization
Fund
(NEMSF)


Nigerian Electricity Market Stabilization Fund- 2
(NEMSF 2)


Nigerian Electricity Market Stabilization Fund-3
(NEMSF-3)


Nigerian Bulk Electricity Trading- Payment Assurance
Fund (NBET-PAF)

-
-
-

Family Homes Intervention Facility (FHIF)
-
-
-

Solar Connection Facility (SCF)


National Mass Metering Programme (NMMP)


Intervention Facility for National Gas Expansion
(IFNGEP)


CBN-Bank Of Industry Intervention Fund (CBIF)


Real Sector Support Facility (RSSF)


Textile Sector Intervention Facility (TSIF)


Differentiated Cash Reserve Requirement (RSSFDCRR)


Small
&
Medium
Enterprise
Restructuring
&
Refinancing Facility (SMERRF)


Health Sector Intervention Facility (HSIF)


Covid-19 Intervention for the Manufacturing Sector
(CIMS)


Health Sector Research & Development Intervention
Scheme (HSRDIS)


100 FOR 100 Policy on Production and Productivity


Youth Entrepreneurship Intervention Programme
(YEDP)


Targeted Credit Facility (TCF)


Creative Industry Financing Initiative (CIFI)


National Youth Intervention Fund (NYIF)


Agri-business
Small
&
Medium
Enterprises
Intervention Scheme (AgSMEIS)


Tertiary Institution Entrepreneurship Scheme (TIES)


Anchors Borrowers Programme (ABP)


Accelerated
Agricultural
Development
Scheme
(AADS)


Commercial Agriculture Credit Scheme (CACS)


Paddy Aggregated Scheme (PAS)


Maize Aggregated Scheme (MAS)


Rice Distribution Facility (RDF)


National Food Security Programme (NFSP)


NESF


Export Financing Initiative (EFI)

-
1.68
7.08

Presidential Fertilizer Initiative (PFI)


Export Development Fund (EDF)


Micro, Small and Medium Enterprise Development
Fund (MSMEDF)


Shared Agency Network Expansion Facility (SANEF)

TOTAL

Source: Central Bank of Nigeria
*Figures are provisional and are as of June 30, 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

2.6. Financial Inclusion and Institutional Support
2.6.1. Financial Inclusion
The Bank sustained efforts in promoting financial inclusion in collaboration with financial
service providers and other industry stakeholders, which resulted in an increase in the
proportion of financially-included Nigerians to 74.00 per cent.
New BVN enrolment increased to 2,420,595 at end-December 2024, from 2,238,172 at
end-June 2024. Of the total BVNs enrolled in the review period, 1,088,541 (44.97 per cent)
were for female customers. Also, 125,154 new agents were onboarded under the SANEF
agent expansion scheme, bringing the total number of agents to 1,952,242 and increasing
access points per capita to 1,758 per 100,000 adults

Table 2.18: Key Financial Inclusion Indicators
Indicator

End-Jun 2024
End-Dec 2024*
New BVN Registration

2,238,172
2,420,595
New BVN Registration (Female)

998,374
2,015,551
Total Agents

1,892,516
1,952,242
Total No. of Onboarded (New) Agents

65,428
125,154
*All figures are provisional.
**Nos of Agents Per 100,000 Adults was calculated using 111 million adult population from the 2023 EFInA
Survey

2.6.2. Financial Literacy and Consumer Education
During the review period, the Bank continued to implement a range of financial literacy and
consumer education initiatives aimed at enhancing public awareness and understanding of
financial products, services, and consumer rights. These efforts were part of the Bank’s
broader mandate to promote financial inclusion and ethical financial behaviour. Key
activities undertaken were:
2.6.2.1.
SabiMONI Platform
The total enrolment on the platform was 12,314, reflecting an increase from the 11,446 at
end-June 2024. The growth underscored continued interest in digital financial education
initiatives, as well as the Bank’s efforts to promote financial literacy through accessible and
scalable learning tools.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
2.6.2.2.
World Savings Day
The Bank commemorated the 2024 World Savings Day with the theme “100 Years Forward
Together – Shaping the Future of Responsible Banking”. The activities featured included a
financial literacy fair, which provided a platform to educate children on savings and
investments, a school mentoring programme and a visit to the CBN Currency Museum by
selected schools across the six geo-political zones. A total of 433 students participated in
the two events, 57.00 per cent female and 43.00 per cent male.

2.6.2.3.
Financial Literacy Training for Faith-Based Organisations
The Bank conducted a Training-of-Trainers (ToT) programme for 160 participants from
three faith-based organisations to promote consumer education and financial literacy. The
training covered savings, budgeting, investment and financial discipline as fundamentals
for informed financial decisions.


2.6.2.4.
National Peer Group Educator Programmes
The Bank, in collaboration with the Federal Ministry of Youth Development, National Youth
Service Corps (NYSC) and other stakeholders, sustained the implementation of the
National Peer Group Educator ToT programme. The programme was conducted at NYSC
Camps in seven states and a total of 300 Volunteer Corps Members were trained.

2.6.3. National Collateral Registry
The number of financing statements and borrowers increased during the review period by
8.62 per cent and 9.98 per cent to 39,578 and 42,261, respectively, indicating a sustained
increase in demand for credit secured by movable assets. Individuals continued to be the
highest number of borrowers utilising the Secured Transactions in Movable Assets (STMA)
de-risked lending environment, followed by medium businesses, in both the first and
second halves of 2024.
The values of Naira and USD-denominated financing statements increased by 38.55 per
cent and 33.31 per cent, respectively, reflecting increased use of movable assets as
collateral.

Table 2.19: Transactions on the National Collateral Registry Portal
Debtor
Type
Number of Financing
Statements
Number of
Borrowers
Currency
Value of Financing
Statements

End-Jun

End-Dec

End-Jun

End-Dec

End-Jun

End-Dec

Individual

(₦' billion)
193.76
217.874
($' million)
-
0.1
Large
Business


(₦' billion)
269.41
443.44

520 ($' million)
126.00
56.26


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Medium
Business

(₦' billion)
130.83
215.99
($' million)
31.25
14.20
Micro
Business

318 (₦' billion)
32.93
2.99
Small
Business
1,463
1,969
1,657

2,165
(₦' billion)
30.63
30.75
($' million)
-
139.06
Total


(₦' billion)

42,261 ($' million)
157.25
209.64

Furthermore, the number of financing statements for women and women-owned
enterprises increased by 5.07 per cent, to 16,774 from 15,964 in the first half of the year,
while the number of women and women-owned enterprises that borrowed increased by
6.47 per cent. Total financing of women and women-owned enterprises grew by 44.27 per
cent, indicating improved access to credit.
The number of women and women-owned enterprises accessing credit secured with
movable assets declined by 37.78 per cent. Similarly, the number of financing statements
and the Naira-denominated value of financing statements declined by 38.09 per cent and
29.77 per cent, respectively.

Table 2.20: Women and Women-owned Enterprises Transactions on the National Collateral
Registry
Debtor
Type
Number of Financing
Statements
Number of Women and
Women-owned
Enterprises
Currency
Value of Financing Statement

End-Jun

End-Dec

End-Jun

End-Dec 2024

End-Jun

End-Dec 2024
Individual
15,368
15,797
15,726
16,341 (₦' billion)
75.90
108.48
Large
Business

73 (₦' billion)
0.85
1.93
Medium
Business

620 (₦' billion)
5.66
8.20
Small
Business

420 (₦' billion)
0.42
0.34
Micro
Business

65 (₦' billion)
1.79
3.13
Total
15,964
16,774
16,455
17,519 (₦' billion)
84.62
122.08
Cumulatively,169 financial institutions registered 449,707 financing statements valued
₦22,082.24 billion, US$3.88 billion, €0.01 billion, and £27,352 at end-December 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
3. CENTRAL BANK REGULATORY AND SUPERVISORY ACTIVITIES
3.1. Financial Soundness Indicators
Despite the macroeconomic challenges, the banking industry was resilient as reflected by
key financial soundness indicators during the review period. Asset quality remained strong,
with robust solvency levels capable of absorbing potential losses. Liquidity remained above
the regulatory threshold, and industry earnings were acceptable, with significant profits
generated from core operations, underscoring banks’ operational efficiency and financial
strength (Appendix 5).
3.1.1. Asset-Based Indicators
3.1.1.1.
Non-Performing Loans Ratio
The non-performing loans (NPLs) ratio increased to 4.87 per cent, from 4.12 per cent at
end-June 2024, but remained below the regulatory limit. In addition, the ratio of NPLs net
of provisions to capital improved slightly, decreasing to 4.91 per cent from 5.39 per cent,
indicating improved buffers to absorb potential loan losses. These indicators reflected the
Bank's continuous effort to strengthen the regulatory framework amid evolving risks.
Figure 3.1 Banking Industry NPLs Ratio

3.1.1.2.
Core Liquid Assets to Total Assets and Short-term Liabilities
The ratio of core liquid assets to total assets decreased marginally by 1.05 percentage
points to 18.26 per cent from 19.31 per cent at end-June 2024, driven mainly by the
significant increase in total assets, which outweighed the increase in core liquid assets.
Similarly, the ratio of core liquid assets to short-term liabilities declined by 0.94 percentage
point to 47.08 per cent, owing mainly to the significant increase in deposit liabilities,
especially the foreign currency deposits due to revaluation. These ratios remain robust,
reflecting the adequacy of the banking industry's liquidity buffers.
end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
NPLs-LHS

Specific Provisions-LHS

NPLs net of provisions to capital

NPL to Gross Loans

Percentage (%)
Amount ('N Billion)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.2 Banking Industry Liquidity Indicators


3.1.1.3.
Exposure of the Banking Industry to Real Estate Sector
The ratio of residential real estate loans to total gross loans increased by 0.06 percentage
point to 0.29 per cent from 0.23 per cent, while the ratio of commercial real estate loans to
total gross loans declined by 0.19 percentage point to 1.57 per cent from 1.76 per cent at
end-June 2024.
3.3 Exposure to Real Estate Sector


3.1.1.4.
Exposure to Oil & Gas, Manufacturing and Services Sectors
The banking industry exposure to oil & gas and manufacturing sectors as a proportion of
gross loans decreased by 0.30 and 1.98 percentage points to 31.03 per cent and 15.44 per
cent, respectively. However, exposure to the services sector increased by 4.02 percentage
points to 45.75 per cent.

end-Jun-2022 end-Dec-2022 end-Jun-2023 end-Dec-2023 end-Jun-2024 end-Dec-2024
Pecentage(%)
Liquid assets (core) to total assets
Liquid assets (core) to short-term liabilities

end-Jun-2022 end-Dec-2022 end-Jun-2023 end-Dec-2023 end-Jun-2024 end-Dec-2024
Per cent
Residential real estate loans to total gross loans
Commercial real estate loans to total gross loans


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.4 Exposure of Banking System to Oil & Gas, Manufacturing and Services2


3.1.2. Capital-Based Indicators
The banking industry solvency improved during the review period as capital adequacy ratio
rose significantly to 15.25 per cent from 12.52 per cent at end-June 2024, strengthening
the banks’ capital buffer and capacity to withstand shocks. Similarly, Tier-1 capital to
risk-weighted assets increased to 12.91 per cent at end-December, 2024 from 10.62 per
cent at end-June 2024. The rise in capital was due largely to increase in earnings and the
banking industry recapitalisation exercise.
Figure 3.5 Banking Industry Capital Adequacy Indicators

*The ratios are computed based on IMF-FSI Manual

3.1.3. Income and Expense Ratios
The industry’s profitability remained strong, with interest margins rising to 54.73 per cent
from 50.07 per cent at end-June 2024. This reflected the enhanced interest income

2 Services include: Real Estate, Finance, Insurance & Capital Market, Education, Upstream and Oil & Gas Services, Power
Transmission and Distribution, Information & Communication, Transportation & Storage, General and Others


end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
Percentage (%)
Oil & Gas to Gross Loans
Manufacturing to Gross Loans
Services to Gross Loans

end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
Percentage(%)
Regulatory capital to risk-weighted assets
Regulatory Tier 1 capital to risk-weighted assets


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
generation relative to gross income. Non-interest expenses, as a share of gross income,
decreased slightly to 46.10 per cent, from 47.65 per cent in the preceding half year,
indicating gains in operational efficiency. However, personnel expenses as a proportion of
non-interest expenses increased marginally to 24.12 per cent, from 23.09 per cent in the
first half of 2024.
Figure 3.6 Income and Expense Ratios


Overall, Nigerian banks continued to demonstrate resilience, underpinned by robust capital
buffers and stable liquidity positions. However, the rising level of non-performing loans
underscored the need for sustained risk management and appropriate macroprudential
measures.

3.2. Other Financial Institutions3
The total assets of OFIs, excluding the BDCs, increased by 20.72 per cent to ₦13,135.16
billion from ₦10,880.94 billion at end-June 2024. The increase in assets was contributed
by DFIs (15.77 per cent), MFBs (3.32 per cent), FCs (1.36 per cent) and PMBs (0.27 per
cent). The improvement was largely attributed to an increase in investments and
placements.
Investment grew by 43.17 per cent to ₦5,408.18 billion from ₦3,777.35 billion in the
preceding half year. Placements increased by 14.73 per cent to ₦1,690.12 billion from
₦1,473.15 billion, in the preceding half year. Cash & bank balances and fixed assets
increased by 38.74 per cent and 62.28 per cent to ₦751.59 billion and ₦461.96 billion from
₦541.71 billion and ₦284.66 billion, respectively at end-June 2024.
Deposits and borrowings increased by 45.48 per cent and 29.30 per cent to ₦3,253.04
billion and ₦5,813.96 billion from ₦2,236.03 billion and ₦4,496.38 billion, respectively, at
end-June 2024. Similarly, Other liabilities increased by 22.76 per cent to ₦2,525.16 billion
from ₦2,056.99 billion at end-June 2024. However, long-term liabilities decreased by 74.36

3 Other Financial Institutions (OFIs) refer to Microfinance Banks, Development Finance Institutions, Primary Mortgage
Banks and Finance Companies.

end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
Percentage (%)
Interest margin to gross income
Noninterest expenses to gross income
Personnel expenses to noninterest expenses


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
per cent to ₦221.54 billion from ₦864.09 billion in the first half of 2024. Shareholders’ funds
grew by 7.57 per cent to ₦1,140.22 billion from ₦1,059.96 billion at end-June 2024.

Figure 3.7 OFIs Asset to GDP (Percentage Ratio)


Figure 3.8 Consolidated Balance Sheet of OFIs


N'Billions
Assets
Jun-24
Dec-24


N'Billions
Liabilities
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.9 Total Assets Structure of OFIs


3.2.1. Development Finance Institutions
The total assets of the DFI sub-sector increased by 24.95 per cent to ₦8,593.85 billion
from ₦6,877.89 billion at end-June 2024, owing largely to increases in investments, loans,
and cash & bank balances. Three DFIs accounted for 87.91 per cent of the total assets
compared with 91.91 per cent in the preceding half year.
Borrowings and other liabilities increased by 30.62 per cent and 36.68 per cent to
₦5,371.89 billion and ₦1,519.05 billion from ₦4,112.70 billion and ₦1,111.37 billion at
end-June 2024, respectively. However, long-term liabilities decreased by 1.13 per cent to
₦65.83 billion, compared with ₦66.58 billion at end-June 2024. The shareholders' funds
increased by 2.00 per cent to ₦759.28 billion, from the ₦744.40 billion in the preceding
period, owing to increased retained earnings.
CAR and LR were 24.15 per cent and 337.68 per cent and above the minimum regulatory
benchmarks, respectively. Furthermore, the NPL ratio improved by 1.14 percentage points
to 18.24 per cent, from 19.38 per cent at end-June 2024. The improvement in the FSIs
was mainly attributable to increased operational efficiency and loan repayments.


End- Jun. 2024
DFI
PMB
FC
MFB
DFI, 65%
PMB,
5%
, FC, 6%
MFB, 24%
End-Dec 2024
DFI
PMB
FC
MFB


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.10 Consolidated Balance Sheet of DFIs


Figure 3.11 Total Assets of DFIs


Cash & Bank
Balances
0.90%
Placements
14.06%
Investment
51.36%
Net Loans &
Advances
31.02%
Other Assets
1.43%
Fixed Assets
1.23%
End- Jun. 2024
Cash & Bank
Balances
2.20%
Placements
10.31%
Investment
59.07%
Net Loans &
Advances
26.09%
Other Assets
1.20%
Fixed Assets
1.12%
End- Dec. 2024


N'Billion
Liabilities
Jun-24
Dec-24


N'Billion
Assets
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.12 Total Liabilities of DFIs


3.2.2. Primary Mortgage Banks
The total assets of the sub-sector increased by 4.98 per cent to ₦624.06 billion from
₦594.48 billion at end-June 2024, owing largely to increases in placements, short term
investments and other assets. Placements and other assets increased by 23.28 and 7.46
per cent to ₦119.62 billion and ₦76.70 billion, from ₦97.03 billion and ₦71.37 billion,
respectively, at end-June 2024.
Similarly, deposits increased by 7.11 per cent to ₦252.07 billion from ₦235.34 billion, while
borrowings increased by 76.94 per cent to ₦28.01 billion, from ₦15.83 billion at end-June
2024. Also, the shareholders’ funds increased by 24.04 per cent to ₦57.61 billion owing to
a combination of fresh capital injection and accretion to reserves from retained profits.
Investible funds available to the PMB sub-sector amounted to ₦45.58 billion against the
₦45.36 billion recorded at end-June 2024. The funds were mainly from increases of ₦16.73
billion, ₦9.77 billion and ₦12.18 billion in deposits, reserves, and borrowings from banks,
respectively. These were largely used to finance increases of ₦22.59 billion, ₦6.58 billion
and ₦5.32 billion in placements, short-term investments and other assets, respectively.
The LR stood at 56.28 per cent, above the regulatory minimum of 20.00 per cent. The NPL
ratio rose to 21.80 per cent, from 17.43 per cent at end-June 2024, but remained within the
regulatory limit of 30.00 per cent.


Paid-up Capital
5.91%
Reserves
4.91%
Deposits
10.90%
Borrowings
59.80%
Due to Banks
1.35%
Other Liabilities
16.16%
Long-term
Liabilities
0.97%
End- Jun. 2024
Paid-up Capital
5.21%
Reserves
4.48%
Deposits
9.70%
Borrowings
10.07%
Due to Banks
68.56%
Other Liabilities
1.14%
Long-term
Liabilities
0.84%
End- Dec. 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.13 Consolidated Balance Sheet of PMBs


Figure 3.14 Composition of Assets of PMBs


Billion
Assets
Jun-24
Dec-24

Billion
Liabilities
Jun-24
Dec-24

End-Jun. 2024
Cash & Short-Term Funds
Investment
Net Loans & Advances

End-Dec. 2024
Cash & Short-Term Funds
Investment
Net Loans & Advances
Other Assets
Fixed Assets


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.15 Composition of Liabilities of PMBS


Table 3.1: Financial Highlights of PMBs

End-June 2024
(N’ billion)
End-December

(N’ billion)
Change
(N’ billion)
% Change
Total Assets

Net Loans and Advances

Placements

Other Assets

Fixed Assets

Reserves

Deposit liabilities

Other liabilities

Paid-up Capital

Shareholders’ funds

Capital Adequacy Ratio

Liquidity Ratio (%)

Non-performing Loans


End- Jun. 2024
Paid-up Capital
Reserves
Deposits
Due to Banks
Long-term Liabilities
Other Liabilities

End- Dec. 2024
Paid-up Capital
Reserves
Deposits
Due to Banks
Long-term Liabilities
Other Liabilities


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 3.2: Sources and Utilisation of Investible Funds of PMBs as at December 2024
Items
Source (N’million)
Utilisation (N’million)
Cash
456,375

Bank Balances
935,398

Placements

22,590,199
Investments

5,523,583
Loans And Advances
4,095,703

Other Assets

5,324,754
Fixed Assets

1,629,845
Paid-Up Capital
1,393,414

Reserves
9,772,937

Deposits
16,727,181

Due To Other Banks
12,186,410

Long Term Loans/NHF

665,415
Other Liabilities

9,833,622
Total
45,567,418
45,567,418
[[
3.2.3. Finance Companies
The total assets of FCs increased by 24.08 per cent to ₦760.83 billion during the review
period from ₦613.17 billion in the preceding period, largely owing to increases in net loans
and advances, placements and other assets. Net loans and advances, placements and
other assets grew by 21.70 per cent, 45.57 per cent and 30.16 per cent to ₦410.18 billion,
₦103.84 billion and ₦94.52 billion, respectively.

Similarly, borrowings and long-term liabilities increased by 15.22 per cent and 729.17 per
cent to ₦442.06 billion and ₦3.98 billion, from ₦383.68 billion and ₦0.48 billion,
respectively, at end-June 2024. Also, shareholders’ funds grew by 25.81 per cent to ₦72.50
billion from ₦57.62 billion, following increases in paid-up capital and reserves.

Investible funds rose mainly from increased borrowings, shareholders’ funds, and other
liabilities. The funds were utilised to create additional loans & advances, placements and
investments.

The NPL of the subsector improved from 12.61 per cent at end-June 2024 to 9.17 per cent,
which was within the regulatory limit of 10.00 per cent. The reduction reflected
improvements in asset quality and loan recovery. Similarly, CAR improved to 9.86 per cent
from 9.07 per cent but remained below the regulatory minimum of 12.50 per cent.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Table 3.3: Highlights of Financial Position of Finance Companies


End-June 2024
(N’ billion)
End-December 2024
(N’ billion)
Change
(N’ billion)
% Change

Total Assets

Balances with Banks

Net Loans and Advances

Investments

Placements

Fixed Assets

Borrowings

Other Liabilities

Shareholders’ Funds

Paid-up Capital

Reserves

Capital Adequacy Ratio

Non-performing Loans


Figure 3.16 Consolidated Balance Sheet of Finance Companies

Billion
Axis Title
Assets
Jun-24
Dec-24

Billion
Axis Title
Liabilities
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Figure 3.17 Composition of Assets


Figure 3.18 Composition of Liabilities of Finance Companies


Table 3.4: Sources and Utilisation of Investible Funds of Finance Companies as at December 2024

₦’000
₦’000

Source
Utilization
Bank Balances

3,651,989
Placements

32,504,318
Investments

8,764,701
Net Loans and Advances

73,147,298
Other Assets

21,907,900
Fixed Assets

7,685,311
Paid-Up Capital
10,055,137


End-Jun 2024
Cash & Bank Balances
Placements
Investments
Net Loans & Advances
Other Assets
Fixed Assets

End- Dec 2024
Cash & Bank Balances
Placements
Investments

End- Jun. 2024
Paid-up Capital
Reserves
Borrowings
Long-term Liabilities
Other Liabilities

End- Dec. 2024
Paid-up Capital
Reserves
Borrowings
Long-term Liabilities
Other Liabilities


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Reserves
4,820,498

Long-term Liabilities
3,500,944

Borrowings
58,385,368

Other Liabilities
70,899,569

Total
147,661,517
147,661,517


3.2.4. Microfinance Banks
Total assets grew by 12.92 per cent to ₦3,156.42 billion from ₦2,795.40 billion at end-June
2024, owing to increases in placements, cash & bank balances and fixed assets.
Placements, bank balances and fixed assets rose by 69.63, 19.97 and 120.07 per cent
above levels recorded in the first half of 2024 to ₦573.38 billion, ₦481.18 billion and
₦286.54 billion, respectively. Loans and advances declined to ₦1,066.87 billion from
₦1,256.32 billion at end-June 2024. The trends in the indicators reflected a shift in the focus
of MFBs to low-risk investments.
Also, the rise in liabilities was largely due to increase in deposits and accretion to reserves,
by 76.87 and 57.77 per cent above the levels in the first half of 2024 to ₦2,212.43 billion
and ₦74.07 billion, respectively. The improvement in deposits was mainly driven by the
sustained application of financial technology in the operations of MFBs. The shareholders’
funds also grew by 18.61 per cent to ₦250.84 billion, at end-December 2024, owing to
accretion to reserves and fresh capital injection.
The CAR and LR at 11.44 and 53.00 per cent, were above the minimum regulatory
requirements of 10.00 and 20.00 per cent, respectively. The CAR improved by 1.48
percentage points, from 9.96 per cent at end-June 2024, while the LR declined by 12.46
percentage points from 65.46 per cent in the first half of 2024.
Investible funds rose by ₦508.24 billion, attributable largely to growth in deposits of
₦961.54 billion. The funds were utilised mainly to increase placements and fixed assets.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Table 3.5: Highlights of Financial Position of Microfinance Banks


End-June 2024
(N’ Billion)
End-December

(N’ Billion)
Change
(N’ Billion)
% Change

Total Assets

Investments

Net Loans and Advances

Other Assets

Fixed Assets

Paid up capital

Reserves

Shareholders’ Funds

Deposits

Takings from Other Banks

Long
Term
Loans/Onlending

Other Liabilities

Capital Adequacy Ratio

Liquidity Ratio (%)

Portfolio-at-Risk
(PAR)
(%)


4.99
40.73


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Figure 3.19 Balance Sheet of Microfinance Banks


Figure 3.20 Composition of Assets


Cash &
Bank
Balances
14.35%
Placemen
ts
12.09%
Investme
nt
5.23%
Net Loans
&
Advances
44.94%
Other
Assets
18.73%
Fixed
Assets
4.66%
End- Jun. 2024
Cash & Bank
Balances
15.24%
Placements
18.17%
Investment
7.10%
Net Loans &
Advances
33.80%
Other Assets
16.61%
Fixed Assets
9.08%
End- Dec. 2024


Billion
Assets
Jun-24
Dec-24


Billion
Liabilities
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.21 Composition of Liabilities of Microfinance Banks


Table 3.6: Sources and Utilisation of Investible Funds of Microfinance Banks as at December 2024

₦’000
₦’000

Source
Utilisation
Cash

4,706,271
Bank Balances

75,398,093
Placements

235,368,403
Investments

77,808,847
Loans And Advances
189,453,271

Other Assets

854,406
Fixed Assets

156,337,787
Paid-up Capital
12,230,586

Reserves
27,122,937

Deposits
961,543,693

Takings From Other Banks
5,342,517

Long-term Loans (On-lending)

497,994,532
Other Liabilities

147,224,665
Total
1,195,693,004
1,195,693,004

3.2.5. Maturity Structure of MFB Loans & Advances and Deposit Liabilities
The maturity profile of the MFB subsector showed that loans and advances were mainly
short-tenured, accounting for 60.60 per cent, compared with 62.59 per cent at end-June
2024.

Similarly, the deposit structure remained largely short-term, with deposits of less than one
year constituting 63.45 per cent, compared with 75.52 per cent at end-June 2024. Deposits
Paid-up
Capital,
5.89%
Reserves,
1.68%
Deposits,
44.75%
Takings
from Other
Banks,
2.10%
Long-term
Liabilities,
20.58%
Other
Liabilities,
25.01%
End- Jun. 2024
Paid-up
Capital,
5.60%
Reserves,
2.35%
Deposits,
70.09%
Takings
from ...
Long-...
Other
Liabilities,
17.49%
End- Dec. 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
with maturities of over one year increased to 36.55 per cent, compared with 24.48 per cent
in the preceding period, suggesting an improvement in stable funding of the subsector.
Table 3.7: Maturity Structure of MFBs Loans and Advances and Deposit Liabilities

End-Jun 2024
End-Dec 2024
Tenor/Period
Loans and Advances
(%)
Deposits (%)
Loans and
Advances (%)
Deposits (%)
0-30 Days

31-60 Days

61-90 Days

91-180 Days

181-360 Days

Short-Term

Above 360 Days

Total
100.00
100.00

3.2.6. Other Developments in the OFI Sub-sector
The Bank sustained engagements with Development Bank of Nigeria (DBN), Bank of
Industry (BOI), and the Small and Medium Enterprise Development Agency of Nigeria
(SMEDAN) to bridge the funding gap between DFIs and eligible MFBs.
3.2.7. Asset Management Corporation of Nigeria
In the review period, cash recoveries decreased by 11.18 per cent to ₦51.71 billion from
N57.49 billion in the first half of 2024, while investment income from treasury operations
increased by 36.25 per cent to ₦14.91 billion from N9.51 billion in the preceding half year.
The Corporation achieved a total recovery of ₦2,323.68 billion from inception,
comprising cash of ₦918.38 billion; other collections (proceeds from property sales,
share sales, rental income, dividend income, sale of bridge banks and reinvestment
income), amounting to ₦1,270.76 billion; and asset forfeitures of ₦134.54 billion.
The carrying value of AMCON’s liabilities increased by 3.22 per cent to ₦5,687.36
billion, from ₦5,504.39 billion at end-June 2024. The Corporation’s total assets net of
impairment stood at ₦1,319.20 billion, compared with ₦1,104.00 billion in the first half
of 2024, reflecting an increase of 19.49 per cent.
Collections into the Banking Sector Resolution Cost Fund (BSRCF) amounted to
₦577.84 billion contributed by the Bank and 15 banks. The funds were utilised by
AMCON at end-December 2024 to settle its obligations on issued securities.

3.3. Banking Industry Stress Tests
The Bank maintained its oversight role by conducting comprehensive top-down
solvency and liquidity stress tests. These assessments serve as a forward-looking


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
mechanism for identifying potential vulnerabilities and emerging risks within the banking
industry, enabling timely implementation of appropriate regulatory interventions to
ensure long-term stability (Appendix 6).
3.3.1. Solvency Stress Test Baseline Position
The baseline CAR, LR and NPL ratio of the banking industry in the period under review
were 15.25, 48.62 and 4.87 per cent, respectively, which were within regulatory thresholds.
Return on Asset (ROA) and Return on Equity (ROE) stood at 3.49 and 56.74 per cent,
respectively.

Table 3.8: Banking Industry Baseline Selected Key Indicators

CAR (%)
LR (%)
NPL
Ratio
(%)
ROA (%)
ROE (%)
a. Dec 2023

b. Jun 2024

c. Dec 2024

Percentage Points Change
(c – b)


Figure 3.22 Banking Industry Selected Key Indicators


3.3.1.1.
Credit and Credit Concentration Risk
Stress test results highlighted the robustness of the banking industry in managing general
credit and credit concentration risks, even under adverse conditions. The industry
demonstrated resilience against a 30.00 per cent increase in NPLs, with the CAR remaining
above the regulatory threshold of 10.00 per cent. Under the shock of a 50.00 per cent
increase in NPLs, the industry’s CAR remained above the regulatory minimum,
underscoring the sector’s ability to withstand significant credit deterioration.

CAR
LR
NPL Ratio
ROA
ROE
End-Dec 2023
end-Jun 2024
end-Dec 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
A scenario in which the five largest corporate credit facilities deteriorate from performing to
sub-standard, the industry CAR would remain above the minimum threshold of 10.00 per
cent, reflecting adequate corporate risk diversification and prudent credit portfolio
management.
The results of general credit and credit concentration stress test showed that banks had
sufficient capital buffers to absorb potential losses arising from increased loan defaults.
Table 3.9 Credit Default Stress Test


3.3.1.2.
Credit Concentration Stress Test
A breakdown of the CMNB’s total credit by sector at end-December 2024 showed that the
Oil and Gas sector had the highest proportion of total credit exposure, accounting for 28.78
per cent, followed by manufacturing with 14.09 per cent.

Table 3.10 Credit Exposure by Sectors
S/No SECTOR
End-Dec 2024 (N’Bn)
% to Total Credit

Oil & Gas
17,235.69
28.78

Manufacturing
8,437.60
14.09

General
5,854.98
9.78

General Commerce
5,848.69
9.77

Finance & Insurance
4,849.54
8.10

Agriculture, Forestry and Fishing
2,940.51
4.91

Others
14,710.47
24.57

Total
59,877.49

Shocks
June 2024
CAR (%)
December 2024
CAR (%)
Baseline
12.52
15.25
10% increase in NPLs
12.25
14.97
15% increase in NPLs
12.12
14.82
20% increase in NPLs
11.98
14.68
30% increase in NPLs
11.71
14.39
50% increase in NPLs
11.17
13.80


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.23 Credit Exposure by Sectors


The stress test results underscored the banking industry's ability to navigate sectoral and
obligor credit concentration risks, even under adverse conditions. A 20.00 per cent
classification of Oil & Gas exposures as doubtful would result in the CAR declining to 13.42
per cent, indicating a potential strain, but still above the regulatory threshold. Similarly, a
20.00 per cent classification of Oil & Gas exposures as lost would decrease CAR to 11.15
per cent, highlighting the resilience of the banking industry to shocks emanating from the
Oil & Gas sector.
Under obligor credit concentration risks, if the five largest corporate credit facilities
deteriorated from performing loans to sub-standard (Scenario 1), the industry CAR would
decline to 14.94 per cent, a moderate impact. Under further strained shocks from
sub-standard to doubtful (Scenario 2), CAR would reduce to 14.46 per cent, indicating
sustained pressure on bank capital buffers. A worst-case shift from doubtful to lost
(Scenario 3) would result in CAR dropping to 13.64 per cent, which would still maintain
resilience above regulatory benchmarks.
Table 3.11 Obligor Credit Concentration Stress Tests


Oil & Gas
Manufacturing
General
General Commerce
Finance & Insurance
Agriculture Forestry and Fishing
Scenarios
Jun 2024
CAR (%)
Dec 2024
CAR (%)
Baseline
12.52
15.25
Scenario 1
Five largest corporate credit facilities shifted from performing to substandard (10% provision)
12.15
14.94
Scenario 2
Five largest corporate credit facilities shifted from sub-standard to doubtful
(50% provision)
11.59
14.46
Scenario 3
Five largest corporate credit facilities shifted from doubtful to lost (100%
provision)
10.65
13.64


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
3.3.1.3.
Climate Risk Stress Test
The climate risk stress test results indicated that banking solvency would decline under
varying levels of severity, falling to 13.88 per cent in a mild scenario, 11.98 per cent in a
moderate scenario, and 9.05 per cent under severe conditions. These findings highlighted
the potential financial vulnerability of banks to climate-related risks, such as losses to
businesses resulting from floods and the shift to eco-friendly technologies (Appendix 7).
Figure 3.24 Climate Risk Stress Test: Impact on CAR


3.3.2. Liquidity Stress Test
The test indicated that, in a one-day run scenario, the LR would decrease to 37.05 per cent
from the baseline of 48.62 per cent, a milder decline from the preceding half-year’s drop
from 50.02 per cent to 35.19 per cent. In 3 and 5 days’ run scenarios, the LR would further
decline to 8.82 per cent and 0.00 per cent, respectively, leading to liquidity shortfalls of
₦7,918.72 billion and ₦9,055.58 billion, compared with ₦8,260.53 billion and ₦10,203.52
billion outcomes at end-June 2024. However, available cash reserve balances, amounting
to ₦20,422.32 billion, would be sufficient to offset any liquidity deficits.


Figure 3.25 Liquidity Stress Test

Mild
Moderate
Severe
Per cent
Baseline CAR
Post-Shock CAR


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as


pTable 3.12: Implied Cash Flow Liquidity Stress Test Results

No. of Banks with LR <
30%


Dec 2023
Jun 2024
Dec 2024
LR (%)
Shortfall to
30% LR
threshold
(N’ billion)
Jun 2024
LR (%)
Shortfall to 30%
LR threshold
(N’ billion)
Day 1


Day 2


Day 3


Day 4


Day 5


Day 30


*( ) denotes liquidity below threshold.


3.3.2.1.
Maturity Mismatch
The asset-liability structure revealed significant imbalances, particularly in short-term
funding buckets, highlighting liquidity concerns. The baseline evaluation of assets and
liabilities revealed a mismatch totaling ₦23,599.30 billion, with current assets exceeding
current liabilities. The shorter end of the market, ≤90-day bucket, recorded a significant
mismatch of ₦16,974.62 billion, indicating heightened liquidity risk in short-term
obligations.


Pre- shock
After Day 1
After Day 2
After Day 3
After Day 4
After Day 5
After Cum Day

Jun-23
Dec-23
Jun-24
Dec-24


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Under Static Rollover Risk (Test 2) and Dynamic Rollover Risk (Test 3), significant
mismatches of ₦31,231.02 billion and ₦36,650.34 billion were observed, compared with
mismatches of ₦25,826.10 billion and ₦29,498.19, respectively, at end-June 2024.

The observed maturity mismatch and rollover risk profiles presented clear evidence of
elevated short-term liquidity stress. While long-term stability provided a cushion, the
substantial gaps in near-term buckets required enhanced supervisory oversight.
3.13: Maturity Profile of Assets and Liabilities
Bucket
Liabilities
Assets
Mismatch
Cumulative Mismatch
₦’ billion
≤30 days

31-90 days

91-180 days

181-365 days

1-3 years

>3 years

Total
107,772.05
131,371.35


Table 3.14: Stress Test Results for Maturity Mismatch

Test 1
Descriptive Maturity
Mismatch.
(No consideration of
rollover)
Test 2
Static Rollover Risk
Analysis.
(No possibility to close
liquidity gaps in other
buckets)
Test 3
Dynamic Rollover Risk test.
(Free assets used to close
liquidity gaps in other buckets)

₦’ billion
No. of
banks with
mismatch
N’ billion
No. of
banks
with
mismatch
N’ billion
No. of banks
with mismatch
≤30 days
29,020.33

12,385.23

(2,982.56)

31-90 days
14,857.93

(813.67)

(1,204.62)

91180days
6,617.01

(7,398.28)

(3,194.24)

181365days
9,028.25

(5,298.88)

(2,480.12)

1-3 Years
4,023.61

(10,224.01)

(7,478.53)

Above

years
(6,572.59)

(19,881.41)

(19,310.27)

Total
56,974.54

(31,231.02)

(36,650.34)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
3.3.2.2.
Contagion Risk Analysis
The contagion risk associated with inter-bank placements and takings increased as total
exposure rose by 23.41 per cent to ₦2,053.36 billion compared with ₦1,663.83 billion at
end-June 2024. A closer analysis revealed that eight out of 26 banks accounted for 84.20
per cent per cent of the total placements, while eight banks were responsible for 96.73 per
cent of total takings.
Despite the rise in exposure, risk to financial system stability remained largely unaffected,
as all placements were fully collateralised.
Figure 3.26 Network Analysis based on Interbank Exposures


3.4. Supervision of Banks and Other Financial Institutions
The Bank continued the close supervision and surveillance of banks and financial holding
companies to promote their safety and soundness as well as financial system stability in
the second half of 2024. During the period, off-site supervisory activities and onsite
assessments (routine examinations and special investigations) were conducted.
3.4.1. Routine and Target Examination
Risk-based examination of 18 banks and four financial holding companies was conducted
during the review period. The examination confirmed that the banks remained safe, stable
Node colour representation
Blue = Placement only
Purple = Net Placement
Pink = Takings only
Magenta = Net Takings


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
and sound. However, some lapses were observed in respect of corporate governance,
prudential requirements, and Shariah compliance by NIBs. The appropriate regulatory
actions were implemented.
3.4.2. Consolidated Supervision
The consolidated examinations of two financial holding companies were conducted in
collaboration with relevant financial services regulators. A few observations relating to the
impact of corporate governance on the non-bank subsidiaries of the financial holding
companies were made and appropriate regulatory measures were taken. On a consolidated
basis, the institutions remained stable and sound.
3.4.3. Cross Border Supervision of Nigerian Banks
The Bank conducted risk-based routine and AML/CFT/CPF examinations of five
cross-border subsidiaries of Nigerian banks compared to three in the preceding half year.
It also concluded the remote risk-based examinations of six subsidiaries of a Nigerian bank
in Chad, Cameroon, Congo Brazzaville, Gabon, Mali and Senegal. The reports on the
examinations recommended measures to address the observed issues of supervisory
concern.

3.4.4. AML Examinations
3.4.4.1.
Spot Check Examination
Spot-check examinations of 17 banks, selected based on their risk profile, were conducted
in the review period to evaluate the banks’ compliance with the ML/TF/PF regulations on
Politically Exposed Persons (PEPs) and Private Banking products and services, including
the conduct of Enhanced Due Diligence (EDD) on the accounts. The outcomes of the
examination revealed some infractions and necessary regulatory measures were taken.
Spot checks of compliance with Targeted Financial Sanction in relation to Terrorism and
Proliferation Financing were conducted on 14 banks during the review period.
3.4.4.2.
Risk-Based Supervision
Risk Based examination was conducted on 31 banks using the On-site Risk Assessment
Methodology (ORAM) tool. Findings revealed some compliance issues and appropriate
regulatory measures were taken.
3.4.4.3.
Risk-Based Cybersecurity
The Bank issued a revised Risk-Based Cybersecurity Framework for Deposit Money Banks
and Payment Service Banks which took effect on July 1, 2024. The framework was aimed
at strengthening cybersecurity governance, risk management, and overall resilience.
In compliance with the framework, the CBN/NDIC conducted a review of the Cybersecurity
Self-Assessment Reports of 17 banks. The review revealed inherent cybersecurity risk and
varying levels of maturity in governance, incident response, and cyber controls. Key threat


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
was concentration risks from reliance on a few third-party vendors. Consequently,
appropriate supervisory actions were taken to address the threats.

3.4.4.4.
Domestic Systemically Important Banks
Five banks maintained their designation as D-SIBs and continued to be subjected to
enhanced supervision. At end-December 2024, the five D-SIBs accounted for 62.81 per
cent of industry total assets of ₦160,520.42 billion; 61.45 per cent of total industry deposits
of ₦99,104.46 billion; and 60.52 per cent of the aggregate industry credit of ₦59,922.10
billion. The D-SIBs remained compliant with prudential requirements.
3.4.5. Supervision of Payment Service Banks
The total number of licensed payment service banks (PSBs) at end-December 2024
remained five. The Bank conducted risk-based examinations of three PSBs. The
examinations revealed some lapses and recommendations were made to address them.

At end-December 2024, the total assets of the five PSBs totalled ₦123.94 billion, while total
deposits and liabilities stood at ₦26.41 billion and ₦98.31 billion, respectively.

3.4.5.1.
Oversight and Compliance Assessment of Payment Service Providers
The Bank conducted routine examinations of 46 licensed Payment Service Providers
(PSPs) to assess their compliance with corporate governance standards, AML/CFT/CPF
regulations, operational resilience and risk management practices. The examinations were
part of efforts to ensure that licensed PSPs adhere to regulatory standards. PSPs that
violated applicable regulations were sanctioned.
s
3.4.5.2.
Supervision of Other Financial Institutions
The Bank continued its supervisory activities to strengthen AML/CFT/CPF oversight in the
Other Financial Institutions (OFIs) sub-sector and undertook the following activities:

i.
Risk-based examinations of 68 MFBs, 79 FCs and 23 PMBs were conducted and
recommendations were made to resolve identified deficiencies.

ii.
The AML/CFT/CPF examination of 127 MFBs, 56 FCs, and three PMBs showed that
most OFIs effectively implemented AML/CFT/CPF policies, adequately monitored
suspicious transactions, and conducted enhanced due diligence on PEPs. Some
OFIs were sanctioned for inadequate AML/CFT governance and failure to risk profile
some customers.

iii. A monitoring exercise of 213 BDCs was conducted to follow up on the
implementation of the recommendations of the previous examinations. The exercise
revealed non-implementation of some of the recommendations, and appropriate
regulatory sanctions were imposed on the affected BDCs.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
3.5. Supervisory Collaboration
The Bank sustained collaborative engagements on cyber-security, cross-border
supervision, and other emerging issues. These collaborations included participation in the
following meetings:
The 50th Meeting of the College of Supervisors of the West African Monetary Zone
(CSWAMZ) held in September 2024 in Conakry, Republic of Guinea. The meeting
reviewed banking sector developments across the Zone and deliberated on
cross-border supervision issues, including examinations, Basel standards
implementations, Expected Credit Loss (ECL) impairment models, and capacity
building.

The maiden meeting of the Expert Committee for Developing a Resolution and Crisis
Management Framework for the West African Monetary Zone held in Aburi, Ghana,
from September 23 – 27, 2024.

Community of African Banking Supervisors (CABS) Working Group on Crisis
Management, Banking Resolution and Fintech held a capacity-building workshop in
Lagos, Nigeria, from December 2 - 4, 2024. The workshop, attended by delegates
from 15 countries, provided participants with the opportunity to share experiences
on Crisis Management and Banking Resolution, Early Warning Systems, and
Managing AML/CFT Risks and Cyber Fraud in Digital Services Companies, among
others.

The Annual Meetings of the AACB Bureau and Assembly of Governors were held
from August 25-30, 2024, in Port Louis, Mauritius. The meetings provided a platform
for financial system supervisors and regulators in Africa to deliberate on major
macroeconomic challenges and the way forward.


3.6. Credit Reporting
3.6.1. Credit Risk Management System
The CBN Credit Risk Management System (CRMS) continued to serve as a veritable
source of credit information in the banking industry. The total number of credit facilities on
the CRMS database decreased by 1.15 per cent to 60,826,788 from 61,533,958 at endJune 2024. The total facilities comprised 59,731,877 individual and 1,094,911
non-individual borrowers.
The total number of facilities with outstanding balances decreased by 56.77 per cent to
4,132,917 (comprising 4,038,477 individuals and 94,440 non-individuals), from 9,560,114
at end-June 2024. The decline, occasioned by tight credit conditions, was reflected in both
individuals and non-individuals. The strict enforcement of the CBN Regulatory Guidelines
on CRMS has led to enhanced compliance by banks, as signified by improved credit
records.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 3.15: Credit Risk Management System Statistics
Borrowers from the Banking Sector (Commercial, Merchant and Non-Interest Banks)
Description

End-Jun 2024
End-Dec 2024

Change
Change
(%)

* Total No. of Credit/facilities reported on
the CRMS:

Individuals

Non-Individuals

* Total No. of Outstanding Credit facilities on
the CRMS:

Individuals

Non-Individuals

* The figures include borrowers with multiple loans and/or credit lines

3.6.2. Credit Bureaux
The licensed credit bureaux remained three in the review period. The average number of
uniquely identified credit records in the database of these credit bureaux increased by 36.26
per cent to 112.17 million, from 82.32 million in the preceding half year. The increase was
mainly attributed to increased awareness and patronage by OFIs of the services of credit
bureaux. The average number of subscribers in the database of the credit bureaux declined
by 2.94 per cent to 1,549 from 1,596 at end-June 2024.

Table 3.16: Credit Bureaux Statistics

[S/N
End-June 2024
End-December

Change (N)
% Change
1 Number
of
credit
records

2 Value of Credit Facilities
(N’Tn)

3 Number of borrowers

4 Number of subscribers


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
3.7. Other Developments

3.7.1. Guidelines on Management of Dormant Accounts, Unclaimed Balances and
Other Financial Assets in Banks and Other Financial Institutions in Nigeria
The Bank issued the revised Guidelines on the Management of Dormant Accounts,
Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions
in Nigeria to operationalise Section 72 of the Banks and Other Financial Institutions Act
(BOFIA), 2020. The Guidelines standardise the management of dormant and unclaimed
balances.
3.7.2. Guidelines on the Implementation of the Foreign Currency Disclosure,
Deposit, Repatriation, and Investment Scheme, 2024
The Bank issued the Guidelines on the Foreign Currency Disclosure, Deposit, Repatriation
and Investment Scheme, 2024 in furtherance of the Presidential Executive Order No. 15,
aimed at facilitating voluntary disclosure, deposit, and repatriation of internationally tradable
foreign currencies held onshore and offshore by Nigerian citizens, resident within or outside
Nigeria. The Guidelines provide modalities for the participation of Commercial, Merchant,
and Non-Interest Banks (CMNBs) in the Scheme, including compliance with AML/CFT/CPF
laws and regulations.

3.7.3. Banking Sector Recapitalisation
Sequel to the banking sector recapitalisation exercise announced in the first half of 2024,
banks are making concerted efforts to meet the new capital requirement through private
placements, rights issues, and public offers, towards March 31, 2026 deadline.

Box 1: Review of Minimum Capital Requirements for Commercial, Merchant, and NonInterest Banks in Nigeria
The Bank on March 28, 2024, issued a circular announcing an upward review of the
Minimum Capital Requirements for Commercial, Merchant and Non-Interest Banks in
Nigeria in line with Section 9 of the Banks and Other Financial Institutions Act (BOFIA)
2020. This was aimed at engendering a more resilient, safe and sound financial system
that would support the emergence of the FGN’s targeted one trillion-dollar economy by
2030. The review also became necessary to strengthen and reposition the banking
system since the last banking consolidation exercise in 2005. The circular stipulated
March 31, 2026 as the deadline for compliance.
Category
Minimum Capital Requirements
₦’ Billion
Current
New
International commercial banks

National commercial banks

Regional commercial banks

FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
National merchant banks

National non-interest banks

Regional non-interest banks

Other details of the circular included:
Options for Meeting Requirements: Banks may raise capital through private placement,
rights issue, public subscription, mergers and acquisitions, or adjusting their licence
authorisation (upgrade/downgrade).
Timeline: Existing banks must meet the new capital requirements within 24 months,
starting from April 1, 2024, and ending on March 31, 2026. New banks must meet the
requirements upon application.
Compliance: Banks must submit an implementation plan to the CBN by April 30, 2024.
The CBN will monitor compliance and enforce the requirements within the stipulated
timeline.
For Existing and New Banks: For existing banks, the minimum capital shall include
paid-up capital and share premium only and must adhere to the minimum capital
adequacy ratio (CAR). New banks must meet the paid-up capital requirement directly.


3.8. Market Conduct Assessment
3.8.1. Monitoring of Quality of Service
An offsite review of the websites of selected CMNBs was conducted to evaluate compliance
with the provisions of the Consumer Protection Regulation (CPR) relating to complaint
handling mechanisms. Specifically, the review assessed whether the institutions provided
multiple dedicated channels for receiving and resolving consumer complaints. The
channels include telephone hotlines, email addresses, online complaint forms, and physical
contact details. The availability, accessibility, and responsiveness of these channels were
used to evaluate each institution’s commitment to consumer protection and regulatory
compliance.
Of the 35 websites reviewed, 32 (91.43 per cent) were found to be fully compliant, one
(2.86 per cent) was partially compliant, while two (5.71 per cent) failed to meet the required
standards. The erring banks have taken corrective measures to address the regulatory
concerns.
3.8.2. Complaint Management and Resolution
The number of escalated complaints declined by 73.39 per cent to 4,398, from 16,527 in
the first half of 2024. The significant decline was largely attributed to proactive regulatory
measures and stakeholder engagements aimed at strengthening the complaint resolution
processes in financial institutions. The measures included stricter enforcement of timelines


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
for complaint resolution, enhanced monitoring, and increased collaboration with financial
service providers to address the root causes of recurring issues.
A breakdown of the escalated complaints revealed that CMNBs accounted for 95.38 per
cent, OFIs 4.32 per cent, while 0.30 per cent were classified as miscellaneous,
encompassing complaints that were not against institutions regulated by the Bank. In terms
of categories, Electronic/Cards-related complaints accounted for 73.24 per cent; fraud,
13.67 per cent; account management, 10.35 per cent; excess charges, 1.77 per cent; and
others 0.98 per cent. A total of 9,344 complaints were resolved/closed, indicating a
decrease of 36.62 per cent from the 14,743 complaints resolved/closed in the preceding
half-year.
Total claims amounted to ₦4.53 billion and US$9,121.43, compared with ₦12.60 billion and
US$1,054,521.04, in the preceding period. The sums of ₦4.19 billion and US$9,131.43
were refunded, compared with ₦5.47 billion and US$665,126.33, respectively in the first
half of 2024.

Table 3.17: Complaints Received
Category
End-June 2024
%
End-Dec 2024
%
Electronic/Cards

Fraud
6,857
41.49

13.67
Account Mgt.
3,699
22.38

10.35
Excess Charges

0.49

1.77
Others

3.07

0.98
Total
16,527

4,398


Figure 3.27 Number of Complaints Received


3,221

Jan - Jun 2024
Jul - Dec 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 3.28 Complaints Resolved/Closed
Table 3.18: Complaints Resolved/Closed
Category
Jun 2024
%
Dec 2024
%
Electronic/Cards

Fraud

Account Mgt.

Excess Charges

1.85

0.64
Others

0.06

0.72
Total
14,743

9,344

Figure 3.29 Distribution of Complaints Resolved/Closed


1,757

1,009

1,910

3,667
1,061
1,945


July
August
September
October
November
December
NO. OF CASES RESOLVED
NO. OF CASES CLOSED
TOTAL

Electronic/Cards
Fraud
Account Mgt
Excess Charges
Others
5,986
6,856
1,619

4,458
2,134
2,626

End-Jun 2024
End-Dec 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
4. DEVELOPMENTS IN THE PAYMENTS SYSTEM
As part of measures to promote an efficient and effective payment ecosystem, the Bank
licensed, supervised payment service providers (PSPs) and sustained engagement with
key stakeholders to foster innovation, enhance regulatory oversight and ensure adaptability
to the rapidly evolving payment landscape.

4.1. Bank Verification Number
The cumulative number of Bank Verification Numbers (BVNs) enrolled stood at 64.80
million, reflecting an increase of 3.88 per cent from 62.38 million at end-June 2024. Of the
311.65 million active customer accounts, 297.29 million were linked with BVNs, while tier 1
accounts with only NIN accounted for the balance. A total of 730 BVNs were watch-listed
during the review period.

Table 4.1 BVN Statistics
Description
End-June 2024

End-December

% Change
BVNs enrolled
62,384,398
64,804,993
3.88
Accounts linked with BVN
208,148,596
297,286,819
42.82
Active Accounts
225,525,483
311,649,156
38.19
Watch-listed BVNs (Fraudulent)
8,746
9,476
8.35
Source: NIBSS

4.2. Licensing and Supervision of Payment Service Providers
The Bank issued licences to 18 PSPs, comprising two Payment Terminal Service Providers
(PTSP), nine Payment Solution Service Providers (PSSP), six Super-Agents and one
Payments Terminal Service Aggregator (PTSA), bringing the total number of licensed PSPs
to 245.
Table 4.2 Payment Service Providers
Licence Type
Jun-2024
Dec-2024
Change
Card Schemes

-
Mobile Money Operator*

-
Switching/Processing Companies

-
Payment Solution Services


Payment Terminal Services Provider**

Payment Solution Services Provider **

FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Super-Agent**

Payments Service Holding Company

-
Payments Terminal Service Aggregator

Total

*The data shown is for Non-Bank Licensed Mobile Money Operators.
** Some PSSPs, PTSPs and super agents hold a combination of authorisations.

4.3. Cheque Standards and Cheque Printers’ Accreditation Scheme
The Bank renewed the operating licences of two cheque printers and two cheque
personalisers during the review period.
4.4. Trend in Payment System

4.4.1. Large Value Payments
The volume and value of inter-bank fund transfers through the CBN RTGS System
increased to 182,584 and ₦95,087.00 billion from 158,988 and ₦61,360.00 billion in the
preceding half-year, reflecting increases of 14.84 per cent and 54.97 per cent, respectively.

4.4.2. Cheque Payments
The volume and value of cheque payments increased by 5.17 per cent and 17.32 per
cent to 1.83 million and ₦1,971.62 billion, from 1.74 million and ₦1,680.62 billion
respectively, at end-June 2024. This indicated a reversal of the declining trend in the use
of cheques as a means of payment.

4.4.2.1.
Electronic Transactions
The volume and value of electronic transactions were 34.40 billion and ₦1,902,840.95
billion, compared to 29.61 billion and ₦1,542,018.27 billion respectively, recorded in the
preceding period. This reflected increases of 16.18 per cent in volume and 23.40 per cent
in value, which is attributable to the growing adoption of electronic channels for
transactions, owing to its convenience.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 4.3: Electronic Transactions
Payment
Channel
Number of Connected
Terminals
Volume of
Transactions (Million)
% Change
Volume
Value ₦’ Billion
% Change
Value
Jun-24
Dec - 24
Jan-Jun

Jul – Dec

Increase/
(decrease)
%
Jan-Jun

Jul – Dec

Increase/
(decrease)
%
ATMs

POS

Mobile Money

Online
Transfers
(Internet/Web)

Mobile App

USSD

Direct Debit

ACH/NEFT

Total


Figure 4.1 Volume of Electronic Transactions

₦' Billion
End-Jun 2024
End-Dec 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Figure 4.2 Value of Electronic Transactions


4.5. Recent Developments and Potential Risk to the Payment System
4.5.1. Licensing of Second Payment Terminal Service Aggregator
To improve the redundancy and scalability of the PoS infrastructure in the country, the Bank
licensed an additional PTSA, thereby ensuring seamless transaction processing during
peak periods and minimising system downtime. In addition, the Bank issued a circular to
all PSPs mandating that all PoS transactions must be routed through a PTSA to strengthen
the monitoring of electronic transactions and enhance financial system stability.
4.5.2. Cash-Out Limits for Agent Banking Transactions
The Bank issued a circular revising the cash withdrawal limits for agent banking
transactions to curb money laundering and financing of terrorism activities through agent
banking channels and establish uniform operational standards across the country.

4.6. Other Developments
4.6.1. Unclaimed Balances Trust Fund
Further to the issuance of the revised Guidelines on the Management of Dormant Accounts,
Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions
in Nigeria, the total amount received into the Unclaimed Balances Trust Fund (UBTF) pool
accounts were ₦10.16 billion, US$0.14 billion, £0.12 million and €0.06 million at
end-December 2024.
4.6.2. Pan-African Payment and Settlement System
The value of transactions settled on the Pan-African Payment and Settlement System
(PAPSS) for Nigerian participants increased significantly to ₦14.72 billion from ₦2.80 billion
in 2023. The significant increase in the value of transactions was due to the adoption of
PAPSS by more African countries.


₦' Billion
End-Jun 2024
End-Dec 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as


Pan-African Payment and Settlement System
The Pan-African Payment and Settlement System (PAPSS) is a centralised payments
and settlement system developed by the African Export-Import Bank (Afreximbank) in
collaboration with the African Union. The system is a secure multi-currency platform
that enables real-time gross settlement with low transaction costs. It supports three core
processes: instant payment, pre-funding and net settlement.
PAPSS enables efficient cross-border flow of money within Africa, minimising risk and
contributing to financial integration and boosting intra-African trade.
The system is regulated in accordance with the PAPSS byelaw, the overarching
framework for the operation and governance of the payments and settlement system.
The byelaw outlines the Scheme Rules and technical standards essential for facilitating
a stable and effective international payments system.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
5. DEPOSIT INSURANCE
5.1. Deposit Guarantee
The Nigeria Deposit Insurance Corporation (NDIC) continued to guarantee payments to
depositors, in the event of failure of an insured financial institution, to a maximum of
₦5,000,000 for CMNBs and subscribers of MMOs, and ₦2,000,000 per depositor for PMBs,
PSBs and MFBs, respectively.
5.2. Deposit Insurance Coverage
The number of fully insured depositor accounts for CMNBs and MMO subscribers, at the
coverage level of “₦5,000,000 and below,” was 332,250,332 or 99.26 per cent, compared
with 308,778,358 or 99.53 per cent at end-June 2024.

Table 5.1: Deposit Insurance Coverage for CMNBs, PSBs and MMOs

End-Jun-24
End-Dec-24
Category of
Depositors
No. of Accts
Category of
Depositors
No. of Accts
<=N5,000,000
308,778,358 <=N5,000,000
332,250,332
>N5,000,000
1,443,705 >N5,000,000
2,470,616
TOTAL
310,222,063 TOTAL
334,720,948
Fully insured to
Total Accounts
(%)
99.53 Fully insured to
Total Accounts
(%)
99.26
Source: NDIC

Furthermore, the number of fully insured depositor accounts for PSBs, at the new coverage
level of “₦2,000,000 and below” increased to 69,211,740 from 62,069,470 in the first half
of the year. In both periods, 99.99 per cent of PSB depositors were covered.
Table 5.2: Deposit Insurance Coverage for PSBs

First Half 2024
Second Half 2024
Category of
Depositors
No. of Accts
Category of
Depositors
No. of Accts
<=N2,000,000
62,069,470 <=N2,000,000
69,211,740
>N2,000,000
325 >N2,000,000

TOTAL
62,069,795 TOTAL
69,212,077
Fully insured to
Total Accounts
(%)
99.9995 Fully insured to
Total Accounts
(%)
99.9995
Source: NDIC

Thus, the percentage of fully insured accounts were above the range of 90.00 to 95.00 per
cent recommended by the International Association of Deposit Insurers.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
5.3. Deposit Insurance Funds
The NDIC maintains separate funds for CMBs, NIBs, MFBs, PMBs and PSBs namely:
Deposit Insurance Fund (DIF), Non-Interest Deposit Insurance Fund (NIDIF), Special
Insured Institutions Fund (SIIF), and Payment Service Deposit Insurance Fund (PSDIF),
respectively.
The balances in the DIF declined by 1.89 per cent to ₦2,279.36 billion, compared with
₦2,323.36 billion in the first half, owing to payments to insured depositors of a
bank-in-liquidation. On the other hand, the balances in the NIDIF, SIIF and PSDIF grew by
7.26 per cent, 3.48 per cent and 33.33 per cent to ₦30.89 billion, ₦245.93 billion and ₦0.84
billion, from ₦28.80 billion, ₦237.67 billion and ₦0.63 billion, respectively, in the preceding
period. The increases were due to additional premium collections/contributions arising from
the 2024 deposit verification.


Table 5.3: Balances of Insurance Funds
Fund Types
Institution Type
End-Jun 2024
End-Dec 2024
%

₦’ Billion
₦’ Billion
Change
DIF
Commercial and Merchant Banks
2,323.36
2,279.36
1.89
NIDIF
Non-interest Banks
28.80
30.89
7.26
SIIF
Microfinance/Primary Mortgage
Banks
237.67
245.93
3.48
PSDIF
Payment Service Banks
0.63
0.84
33.33
Source: NDIC

5.4. Payment of Insured Deposits and Liquidation Dividends
The number of insured financial institutions in liquidation from inception remained 651,
comprising 50 Commercial and Merchant banks, 546 MFBs, and 55 PMBs, as no licences
were revoked within the review period. The liquidation process aims to ensure the payment
of the guaranteed sum, recovery of debts, sales of physical assets, and the distribution of
liquidation dividends on the uninsured sums.

5.4.1. Payments to Insured Depositors
The sum of ₦40,827.91 million was paid to 550,674 insured depositors, compared with
₦10,217.68 million paid to 136,336 depositors in the first half of 2024. Cumulatively, the
sum of ₦59,320.47 million was paid to 1,131,203 insured depositors of 50 Commercial and
Merchant banks in-liquidation compared with ₦18,492.56 million made to 580,529 insured
depositors of 50 Commercial and Merchant banks in-liquidation, at end-June 2024.
A total of ₦17.10 million was paid to 273 insured depositors of MFBs in-liquidation,
compared with ₦110.20 million paid to 1,804 insured depositors in the first half of 2024.
The cumulative payment of ₦5,156.67 million was made to 135,773 insured depositors of
closed 546 MFBs, compared with ₦5,139.57 million payment to 135,500 insured depositors
of 546 MFBs in-liquidation, at end-June 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Similarly, 14 insured depositors of closed PMBs were paid ₦4.34 million compared with
₦22.07 million to 62 insured depositors in the first half of 2024. Cumulatively, the sum of
₦367.02 million was paid to 2,701 depositors of 55 closed PMBs, compared with ₦362.67
million to 2,687 depositors of 55 PMBs in-liquidation, at end-June 2024.
Table 5.4 Payments to Insured Depositors of Banks In-Liquidation

For the
Cumulative as at

End-Jun 2024
End-Dec 2024
End-Jun 2024
End-Dec 2024

₦’ Million
₦’ Million
₦’ Million
₦’ Million
CMBs

MFBs

PMBs

GRAND TOTAL

Source: NDIC
*Revised
5.4.2. Payments to Uninsured Depositors4
The sum of ₦2.60 million was paid to uninsured depositors of 50 CMBs in-liquidation,
compared with ₦515.10 million in the first half 2024. Consequently, the cumulative payment
to uninsured depositors of CMBs stood at ₦105,765.73 million, compared with ₦105,763.13
million at end-June 2024.
A total of N0.25 million was paid to uninsured depositors of 546 closed MFBs, compared
with N56.88 million in the first half of 2024. The payments to uninsured depositors of MFBs
cumulated to N247.26 million, compared with N247.01 million at end-June 2024.
Cumulatively, payment to uninsured depositors of closed PMBs remained ₦261.99 million
as there was no payment during the review period.
Table 5.5: Payments of Liquidation Dividend to Uninsured Depositors of Banks In-Liquidation

For the
Cumulative as at

First Half 2024
Second Half

First Half 2024 Second Half

₦’ Million
CMBs

MFBs

PMBs

GRAND TOTAL

Source: NDIC

4 Uninsured deposits refer to deposits in excess of maximum deposit insurance coverage.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
5.4.3. Payments to Creditors and Shareholders of Banks In-Liquidation
There was nil payment in the second half, compared with ₦0.55 million paid to a creditor of
one of the CMBs in-liquidation during the first half. Cumulatively, the sum of N1,282.50
million was paid to 1,034 creditors of the 50 CMBs in-liquidation, at end-December 2024.
There was no payment to creditors and shareholders of closed MFBs and CMBs during the
second half compared with ₦0.61 million and ₦0.98 million paid to a creditor and nine
shareholders of CMBs, respectively, in the first half. The cumulative payments to 1,007
shareholders remained ₦4,899.14 million at end-December 2024.
5.5. Recovery of Failed Banks’ Assets
5.5.1. Risk Assets Recovery
As part of efforts to realise the assets of banks in-liquidation, the sum of N2,173.46 million
was recovered during the second half, comprising N2,078.37 million, N29.68 million and
N65.41 million from CMBs, MFBs and PMBs in-liquidation, respectively. In comparison, the
sum of N439.66 million was recovered from banks In-Liquidation in the first half.
Table 5.6: Risk Assets Recovery for Banks In-Liquidation

First Half

Second Half

Cumulative First
Half 2024
Cumulative
Second Half

₦’ Million
CMBs

MFBs

PMBs

Grand Total

Source: NDIC
5.5.2. Realisation of Investments and Fixed Assets
The sum of N826.72 million was realised from investments of banks in-liquidation,
compared with N15.01 million in the first half of 2024. The cumulative sum realised from
investments of banks in-liquidation at end-December 2024 was ₦6,832.73 million.
The sum of N4,828.18 million was realised from the sale of physical assets and receipt of
rent on properties of banks in-liquidation, comprising ₦4,649.82 million, ₦174.97 million
and ₦3.39 million from CMBs, MFBs and PMBs in-liquidation, respectively. Cumulatively,
the sum realised stood at ₦28,713.77 million compared with ₦23,885.59 million at endJune 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as

Table 5.7: Realisation of Investments of Banks In-Liquidation

For the
Cumulative as at

First Half 2024
Second Half

June 30,

December 31,

₦’ Million
CMBs

MFBs

PMBs

Grand Total

Source: NDIC
Table 5.8: Realisation from Disposal and Rents of Fixed Assets of Banks In-Liquidation

For the
Cumulative as at

First Half 2024
Second Half

June 30,

December 31,

₦’ Million
CMBs

MFBs

PMBs

Grand Total

Source: NDIC

5.6. Other Developments in Deposit Insurance
5.6.1. Fit and Proper Persons Enquiries
In the second half of 2024, 662 Fit and Proper Persons enquiries were received, of which
544 were processed and 92 incomplete requests were returned, while 26 requests were
outstanding and required further investigation.

5.6.2. Fidelity Insurance Coverage
During the review period, 35 CMNBs and five PSBs submitted evidence of Fidelity
Insurance Coverage of their employees compared with 29 CMNBs and two PSBs during
the first half of 2024.
Furthermore, 28 of the 35 CMNBs and three of the five PSBs maintained adequate Fidelity
Insurance Coverage of 15.00 per cent of the bank’s Paid-up Capital at end-December 2024.
5.6.3. Whistle Blowing
In the second half of 2024, CMNBs closed 74 out of 129 whistle-blowing cases reported to
NDIC, compared with 102 out of 128 in the first half of 2024. The cases bordered on service
delivery, theft and cash suppression, among others.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Overall, the NDIC continued to pursue the achievement of its mandates of protecting
depositors and promoting safe and sound banking practices.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
6. PENSIONS
During the review period, the pension industry engaged with the Federal Government to
explore alternative strategies for reducing pension liabilities, expanding coverage to states
and the informal sector. Additionally, efforts were intensified to improve public awareness
and elevate stakeholder engagement.
Pension Assets under Management (AuM) grew by 9.91 per cent to ₦22,512.35 billion from
₦20,484.23 billion, driven largely by a combination of investment returns and additional
contributions received during the review period. However, pension asset-to-GDP ratio
decreased to 8.36 per cent from 8.55 per cent. The decrease is attributable to the growth
in GDP which outweighed the increase in the pension assets under management.

Figure 6.1: Total Pension Assets to GDP Ratio


6.1. Other Developments in the Nigerian Pension Industry
6.1.1. RSA Membership
Total pension scheme membership increased to 10.58 million from 10.38 million in the first
half of 2024, driven by enhanced private sector compliance and increased adoption of the
Micro Pension Plan by informal sector workers. The growth is expected to persist with the
continued implementation of the CPS by State Governments and informal sector workers.
6.1.2. Retirement Savings Account Transfer
A total of 51,665 RSAs were transferred, valued ₦314.17 billion, compared with 43,920
transfers valued ₦249.75 billion in the preceding half.
A total su m of
6.1.3. Accrued Pension Rights Payments
A total sum of ₦62.69 billion was disbursed to 15,686 beneficiaries, an increase of 324.44
per cent from ₦14.77 billion in the preceding half year, driven largely by enhanced
engagement with the Federal Government.
Cumulatively, Accrued Pension Rights payments of ₦1,143.91 billion were made to
250,342 RSA holders at end-December 2024.

end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
Percentage(%)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Table 6.1: Accrued Rights Payments


Payment Period
End-Jun 2024
End-Dec 2024
Number of Retirees
3,387
15,686
Accrued Rights Paid (₦ billion)
₦14,773,143,000
₦62,692,846,600


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
7. INSURANCE
The insurance industry recorded improved performance at end-December 2024 as
reflected by key indicators.
7.1. Assets and Premium Income
The total assets of the insurance industry rose by 4.60 per cent to ₦3,857.60 billion from
₦3,687.90 billion at end-June 2024. Similarly, gross premium income and net premium
income increased by 94.78 per cent and 98.53 per cent to ₦1,583.60 billion and ₦928.40
billion, respectively, owing to increased awareness and sustained market development
initiatives.
Table 7.1: Assets and Premium Income
Period
End-Jun 2024
₦ billion
End-Dec 2024
₦ billion
% Increase

Gross Premium Income
813.04
1,583.60
94.78
Net Premium Income
467.65
928.40
98.52
Total (Gross) Claims
297.90
731.10
145.42
Total Assets
3,687.90
3,857.60
4.60
Source: NAICOM

7.2. Key Insurance Industry Financial Soundness Indicators
7.2.1. Insurance Assets to GDP
The industry's size, measured by the assets-to-GDP ratio, declined slightly by 0.10
percentage point to 1.44 per cent from 1.54 per cent at end-December 2024. The decrease
is attributable to the growth in GDP which outweighed the increase in the insurance assets.
Figure 7.1 Total Insurance Assets to GDP

7.2.2. Capital Adequacy and Leverage
The industry remained solvent in the review period as the CAR, measured by capital to total
assets, was above the regulatory threshold of 40.00 per cent, increasing to 42.70 per cent
from 41.07 per cent at end-June 2024.

end-Jun-2022
end-Dec-2022
end-Jun-2023
end-Dec-2023
end-Jun-2024
end-Dec-2024
Percentage(%)


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Similarly, the ratio of owners' equity to total invested assets continued its upward trend,
largely driven by capital injections and retained earnings.
Figure 7.2: Equity to Total Invested Assets


7.2.3. Liquidity
The industry’s liquid assets to current liabilities ratio stood at 121.65 per cent, compared
with 120.15 per cent at end-June 2024, demonstrating sufficiency to cover significant
claims.
7.2.4. Other Prudential Ratios
The retention ratio, measured by insurance premium retained to total premium generated,
increased by 1.74 percentage points to 73.67 per cent, from 71.93 per cent at end-June
2024, reflecting an improvement in the industry’s capacity to undertake large insurance
policies.
The combined ratio, which measures the profitability of insurance companies, decreased
by 9.6 percentage points to 61.46 per cent, from 71.06 per cent at end-June 2024. It
remained below the 100.00 per cent limit.

Table 7.2 Insurance Industry Dashboard
KEY INDICATORS
End-Jun 2024
End-Dec

Change
CAR (Capital/Total Asset)
41.07
42.70
1.63
Liquidity Ratio (liquid assets/current liabilities)
120.15
121.65
1.5
Claims Ratio %
45.77
58.30
12.53
Expense Ratio %
25.29
23.16
(2.13)
Combined Ratio %
71.06
61.46
(9.6)
Underwriting Profit Margin
20.43
21.63
1.2
Investment to Total Assets Ratio %
70.67
76.80
6.13
Change in Gross Written Premium (in %)
35.98
35.02
(0.96)
Change in Net Written Premium (in %)
36.17
35.19
(0.98)
Change in Capital & Surplus (in %)
10.05
11.43
1.38
Retention Ratio (in %)
71.93
73.67
1.74
Return on Assets (in %)
1.52
2.06
0.54


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
8. RISKS TO THE FINANCIAL SYSTEM
8.1. Credit Risk

Risk Rating (High, Stable)


The NPL ratio of CMNBs increased to 4.87 per cent, from 4.12 per cent at end-June 2024,
below the regulatory limit of 5.00 per cent. Despite improved risk management practices
and enhanced borrower repayment capacity, vulnerabilities remain, particularly in sectors
with elevated exposure to FX and commodity price movements.
In the first half of 2025, credit risk is expected to be significantly impacted by the potential
effects of forbearance exit, high interest rates and macroeconomic headwinds, including
tighter financial conditions and reduced disposable income. However, improved capital
buffers resulting from the banking industry recapitalisation exercise, expanded use of the
Global Standing Instruction (GSI) by OFIs, improved sovereign ratings and enhanced loan
recovery frameworks are expected to moderate the impact.

8.2. Liquidity Risk
Risk Rating (Low, Stable)

During the second half, the industry liquidity ratios of CMNBs, PMBs and MFBs remained
above regulatory benchmarks at 48.62, 56.28 and 53.00 per cent, respectively, reflecting
robust liquidity conditions in the industry.
The Bank’s contractionary monetary policy stance and continued enforcement of the Cash
Reserve Ratio, Loan-to-Deposit ratio and other macro-prudential tools are expected to
effectively manage banking liquidity levels.

8.3. Market Risk
Risk Rating (Medium, Stable)


Despite headwinds including high inflation and exchange rate pressures, the domestic
fi-nancial market demonstrated remarkable resilience, as evidenced by the largely positive
performance indicators across various subsectors, including banking, capital markets,
pensions and insurance.
The equities segment of the capital market maintained a bullish trajectory in the second
half of 2024, bolstered by the listing of new firms, increased domestic investor participation,
and the momentum generated by the banking sector recapitalisation exercise. Similarly,
exchange-traded products recorded positive performance, reflecting improved investor
appetite and broader market confidence. In contrast, the debt market weakened
signifi-cantly, with an 80 per cent decline in new debt issues between both halves of 2024.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Market risk is expected to trend downward in the first half of 2025 as structural reforms
aimed at boosting market efficiency and enhancing transparency, such as the Electronic
Foreign Exchange Matching System (EFEMS) and FX market unification efforts, impact the
market.

8.4. Operational Risk
Risk Rating (Medium, Trending up)


Operational risk continued to trend upward, largely driven by digital infrastructure strain,
increased transaction volumes, and elevated fraud threats. The exit of experienced
financial and IT professionals from the sector further heightened operational risk.
The Bank continued to enforce stronger KYC, CDD and AML measures to close identified
control gaps, including mandatory BVN/NIN linkage for Tier 1 accounts, and restricted new
account opening without BVN/NIN to address fraud concerns. Consequently, while
report-ed fraud cases increased, actual financial losses declined in the second half of 2024.
The protection of organisational data, enhanced operational efficiencies and staff capacity
building remain critical in mitigating operational risks.

8.5. Cybersecurity Risk
Risk Rating (High, Trending up)

Cybersecurity risk remained high and trended upward during the review period due to
evolving cyber threats, including ransomware, phishing, and third-party service risks.
The Bank continued to enforce the Risk-Based Cybersecurity Framework for DMBs and
PSBs while cyber-incident reporting was sustained via the Cyber-incident Reporting Portal.
Furthermore, third-party risk assessments were enhanced in the period.
The increased digitisation of financial services and the use of outsourced platforms,
sustained investment in infrastructure, staff training, and regulatory oversight would
promote cyber-resilience.

8.6. Macroeconomic Risk
Risk Rating (High, Trending up)
Macroeconomic risk trended upward in the second half of 2024, as inflation remained
elevated. The lingering impact of petroleum subsidy removal, inability to meet the OPEC
production quota, higher electricity tariffs and foreign exchange reforms exerted significant
upward pressure on domestic prices.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Global economic headwinds, including geopolitical tensions and shipping disruptions,
contributed to supply-side shocks while increased debt service burden and constrained
revenue generation further strained fiscal space.
Nevertheless, improved oil production, oil sector reforms, acquisitions of oil assets, as well
as, improved fiscal-monetary coordination are expected to strengthen macroeconomic
fundamentals in the medium term.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
9. Outlook
The global economic outlook for the first half of 2025 remained uncertain, shaped by
persistent geopolitical tensions, elevated global debt levels, and disruptions along key trade
corridors. These would weaken investor sentiment and contribute to increased volatility in
financial markets as well as reduce capital flows to emerging markets such as Nigeria.
On the domestic front, Real GDP growth for 2025 was projected to range between 3.4 per
cent and 3.6 per cent, buoyed by improvements in oil and gas production, domestic refining
capacity, production and services in the non-oil sector following tax reform, and improved
security and business environment. Growth in the capital market, insurance and pension
sectors is expected to continue, driven by increased coverage, digital innovation, and
deepening financial inclusion. Furthermore, improved coordination between the monetary
and fiscal authorities, the recapitalisation of banks, and the implementation of broad
structural reforms are expected to support macroeconomic stability over the medium term.
The external sector is also expected to strengthen further as the foreign exchange market
becomes more liberalised and oil-related earnings improve. These factors should support
the external reserves and help ease pressure on the naira, even in the face of global
headwinds. Thus, Nigeria’s financial system is projected to remain resilient, underpinned
by strong capital buffers, adequate liquidity levels, sustained investment in financial
infrastructure and proactive regulatory oversight. Meanwhile, the Bank will sustain its close
surveillance of cross-border risks associated with global monetary tightening and
geopolitical instability, through regular stress testing, macroprudential reviews, and the
strengthening of cyber and operational resilience frameworks.
Overall, the outlook for Nigeria’s financial system in 2025 is cautiously optimistic. While
external risks and domestic inflationary pressures present ongoing challenges, sustained
reform momentum, regulatory vigilance, and robust macro-financial management are
expected to provide a stable foundation for continued resilience and growth.


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 1: INDICES OF SELECTED STOCK MARKETS
Country
Stock Index
End-Dec

End-June

End-Dec

End-June

End-Dec

%
Change

(5) &
(4)
AFRICA
Nigeria
NGX All-Share
Index

South
Africa
JSE All-Share
Index

Kenya
Nairobi NSE 20
Index

Egypt
EGX CASE 30

Ghana
GSE All-Share
Index

NORTH AMERICA
US
S&P 500

Canada
S&P/TSX
Composite

Mexico
Bolsa

SOUTH AMERICA
Brazil
Bovespa Stock

Argentina
Merval

Columbia
COLCAP

EUROPE
UK
FTSE 100

France
CAC 40

Germany
DAX

ASIA
Japan
NIKKEI 225

China
Shanghai SE A

India
BSE Sensex

Source: Bloomberg


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 2: PERFORMANCE OF SELECTED CURRENCIES AGAINST THE US
DOLLAR

Currency
End-December

End-June 2024
End-December

Change (%)
App + /Dep -


a
b
c
b/c
AFRICA
Nigeria
Naira

South Africa
Rand

Kenya
Shilling

Egypt
Pound

Ghana
Cedi

NORTH AMERICA
Canada
Dollar

Mexico
Peso

SOUTH AMERICA
Brazil
Real

Argentina
Peso

Colombia
Peso

EUROPE
UK
Pound

Euro Area
Euro

Russia
Ruble

ASIA
Japan
Yen

China
Renminbi

India
Rupee

Bloomberg:


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 3: MONETARY POLICY RATES OF SELECTED COUNTRIES
Countries
EndJune

EndDec

EndJune

EndDec

EndJune

EndDec

EndJune

EndDec

EndJune

EndDec

Developed Economies
Japan

Europe

2.5

4.5
4.25
3.15
UK


5.25
5.25
4.75
US

Canada


4.75
3.25
South
Korea
0.5
0.5
0.5


New
Zealand


Australia


Indonesia


6.25

Malaysia

1.75
1.75
1.75

2.72

BRICS
Brazil
2.25


Russia


India


China

South
Africa


Other Emerging Economies & South America
Mexico


Chile
0.5
0.5
0.5


Colombia
2.5
1.75
1.75

7.5

13.25

11.25
9.5
Africa
Egypt

Ghana


29.5

Nigeria


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 4: REAL SECTOR INITIATIVES: SUMMARY OF DISBURSEMENTS AND
REPAYMENTS

ITEM
End-Jun 2024
End-Dec 2024
S/N
Intervention
Disbursement
Repayment
(₦' Billion)
Disbursement
Repayment
(₦' Billion)
(₦' Billion)
(₦' Billion)

Power and Airline Intervention Fund (PAIF)


Nigerian
Electricity
Market
Stabilization
Fund
(NEMSF)


Nigerian Electricity Market Stabilization Fund- 2
(NEMSF 2)


Nigerian Electricity Market Stabilization Fund-3
(NEMSF-3)


Nigerian Bulk Electricity Trading- Payment Assurance
Fund (NBET-PAF)

-
-
-

Family Homes Intervention Facility (FHIF)
-
-
-

Solar Connection Facility (SCF)


National Mass Metering Programme (NMMP)


Intervention Facility for National Gas Expansion
(IFNGEP)


CBN-Bank Of Industry Intervention Fund (CBIF)


Real Sector Support Facility (RSSF)


Textile Sector Intervention Facility (TSIF)


Differentiated Cash Reserve Requirement (RSSFDCRR)


Small
&
Medium
Enterprise
Restructuring
&
Refinancing Facility (SMERRF)


Health Sector Intervention Facility (HSIF)


Covid-19 Intervention for the Manufacturing Sector
(CIMS)


Health Sector Research & Development Intervention
Scheme (HSRDIS)


100 FOR 100 Policy on Production and Productivity


Youth Entrepreneurship Intervention Programme
(YEDP)


Targeted Credit Facility (TCF)


Creative Industry Financing Initiative (CIFI)


National Youth Intervention Fund (NYIF)


Agri-business
Small
&
Medium
Enterprises
Intervention Scheme (AgSMEIS)


Tertiary Institution Entrepreneurship Scheme (TIES)


Anchors Borrowers Programme (ABP)


Accelerated
Agricultural
Development
Scheme
(AADS)


Commercial Agriculture Credit Scheme (CACS)


Paddy Aggregated Scheme (PAS)


Maize Aggregated Scheme (MAS)


Rice Distribution Facility (RDF)


National Food Security Programme (NFSP)


NESF


Export Financing Initiative (EFI)

-
1.68
7.08

Presidential Fertilizer Initiative (PFI)


Export Development Fund (EDF)


Micro, Small and Medium Enterprise Development
Fund (MSMEDF)


Shared Agency Network Expansion Facility (SANEF)

TOTAL

Source: Central Bank of Nigeria
*Figures are provisional and are as of June 30, 2024


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 5: SELECTED FINANCIAL SOUNDNESS INDICATORS OF THE NIGERIAN
BANKING INDUSTRY
Indicators

End June
End Dec
End June
End Dec
1. Assets-Based Indicators


Nonperforming loans to total gross loans

Liquid assets (core) to total assets

Liquid assets (core) to short-term liabilities

Residential real estate loans to total gross loans

Commercial real estate loans to total gross loans

Return on assets

2. Capital-Based Indicators
Regulatory capital to risk-weighted assets

Regulatory Tier 1 capital to risk-weighted assets

Nonperforming loans net of provisions to capital

3. Income and Expense-Based Indicators
Interest margin to gross income

Noninterest expenses to gross income

Personnel expenses to noninterest expenses

4. Exposure to Selected Sectors
Oil & Gas to Gross Loans

Manufacturing to Gross Loans

Services to Gross Loans

5. OFCs Assets Indicators
Pension Assets to GDP

Insurance Assets to GDP

*FSIs are computed based on IMF-FSI Manual


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 6: Stress Test Methodology, Assumptions and Scenarios
Methodology
A multifactor shock stress testing methodology was used to assess the adequacy of banks’
solvency and liquidity positions in relation to economic activities. Different scenarios were
used, encompassing the principles of plausibility, duration, and severity to capture tail risks.
Macroeconomic Assumptions

Persistence in global inflationary pressures leading to prolonged contractionary policy
actions and sharp contraction of global output.

Moderate to sharp fall in global demand for crude oil leading to commensurate decline
in oil prices.

Local crude oil production remained significantly below the approved OPEC quota for
Nigeria.

High inflation, rising unemployment, heightened security challenges and low
agricultural production.
Satellite Assumptions

Macroeconomic conditions and developments apply to the banking industry
symmetrically.

Severity and determination of tail risks are generally recursive with significant
likelihood.

There are no regulatory interventions nor banks’ management actions during the
shocks.

Capitalization under stress is first mitigated by net income as follows:
[〖Capitalization〗_((t))+〖Net Income〗_((t+1)) ]/〖RWAs〗_((t+1))

Fuel subsidy policy change, persistent inflationary pressures, and prolonged
contractionary policy stance.
Impact on banks:

Increased NPLs as households and corporates experience more difficulty in servicing
their loans.

Mark-to-market losses on fixed income securities as a result of rise in interest rates,
especially those classified under FVTPL & FVTOCI.

Maturity mismatch at the shorter end of interest sensitive assets/liabilities. Through
assets and maturity transformation, banks borrow short and lend long to gain from
interest differential. In periods of stress, this has both liquidity and capital implications.
Prolonged high interest rates regime will result in losses to banks with long positions.
Other Credit-related Risks
In periods of heightened stress, the following are significant risks to assess:

Credit concentration risk is often pronounced in period of stress, resulting in significant
solvency/capital implications for banks.
Contagion Risk Analysis


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
Interconnectedness, especially through interbank transactions, generates and amplifies
significant risks to the banking system, leading to possible system collapse.
Unification of the Foreign Exchange Windows & Floating of the Naira

Resulted in the depreciation of the naira against other currencies, particularly the US
dollar.

Impact on banks:
o Translation gain/loss on their net foreign assets
o Increased NPLs in FCY-denominated loan portfolio.
o Increased cost of servicing FCY-denominated liabilities - Eurobonds and other
securities issued in FCY.
Climate Risk Factors
Physical
o Extreme weather conditions resulting in severe and frequent floods, affecting
businesses and impacting:

Exposure to agriculture in varying degrees of severity; and

General credit exposure in varying degrees of severity.
Transition
Increased cost of fossil energy owing to regional conflicts, international sanctions, and
domestic reforms (fuel subsidy removal and increased electricity tariff) leading to shift towards
eco-friendly sources of energy such as solar power system, electric car, gas powered
generators and vehicles. These are expected to impact exposures to:
o Downstream oil and gas; and
o Power and energy sub-sector


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 7: CLIMATE RISK STRESS TEST SCENARIO ASSUMPTIONS
Scenarios
Mild
Moderate
Severe
Physical risk factors –
Losses in credit
exposures due to
floods affecting
businesses.
i) 1% loss in total credit
exposure (excluding
Agriculture)
ii) 10% loss in Agric-
credit exposure

i)
2.5% loss in total
credit exposure
(excluding
Agriculture)
ii) 25% loss in Agric-
credit exposures
i)
5% loss in total
credit exposures
(excluding
Agriculture)
ii) 50% loss in Agric-
credit exposures
Transition risk factors -
Losses in credit
exposures due to shift
to eco-friendly
technologies.
i)
5% loss in exposure
to Downstream Subsector
ii) 5% loss in exposure
to Power & Energy
Sub-sector
i)
10% loss in exposure
to the Downstream
Sub-sector
ii) 10% loss in exposure
to the Power &
Energy Sub-sector
i) 15% loss in exposure
to the Downstream
Sub-sector
ii) 15% loss in exposure
to the Power & Energy
Sub-sector


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 8: LIQUIDITY STRESS TEST ASSUMPTIONS
Implied Cash Flow Analysis
The Implied Cash Flow Analysis (ICFA) assessed the ability of the banking system to
withstand unanticipated substantial withdrawals of deposits, short-term wholesale and
long-term funding over 5 days and cumulative 30 days, with specific assumptions on
fire sale of assets.
The test assumed gradual average outflows of 3.8, 5.0 and 1.5 per cent of current &
savings deposits, short-term funding and long-term funding respectively, over a 5-day
period and a cumulative average outflow of 22.0, 11.0 and 1.5 per cent of current &
savings deposits, short-term funding and long-term funding respectively, on a 30-day
balance. It also assumed that the assets in Table 3.10 would remain unencumbered
after a fire sale.


The Maturity Mismatch/Rollover Risk
This assessed funding maturity mismatch and rollover risk for assets and liabilities in
the 1-30 and 31-90 day buckets, with assumptions of availability of funding from the
CBN and intra-group as described below:

i. Test 2a: Descriptive Maturity Mismatch assumed that the baseline mismatch
remained, but 5 per cent of total deposits would be made available by the CBN and the
intra-group;

ii. Test 2b: Static Rollover Risk assumed that 80.0 and 72.0 per cent of the funding
in the 1-30 and 31-90 day buckets would be rolled over, with no possibility to close
the funding gap from other buckets. However, 5 per cent of the total deposits would
still be available from the CBN and the intra-group; and

iii. Test 2c: Dynamic Rollover Risk made the same assumption as in 2b above, but
with the option of closing the liquidity gap from other buckets.

TABLE 0.1 PERCENTAGE OF ASSETS UNENCUMBERED AFTER FIRE SALES
Item
No
Assets
%
Unencumbered
1.
Cash and cash equivalents

2.
Current account with CBN

3.
Government bonds, treasury bills and other
assets with 0% risk-weighting
66.5
4.
Certificates of deposit held
66.5


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
5.
Other short-term investments

6.
Collateralized placements and money at call

7.
CRR

FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
APPENDIX 9: PENSION INDUSTRY PORTFOLIO
ASSET CLASSES
End-Jun 2024
End-Dec 2024

₦ 'Million
₦ 'Million
DOMESTIC ORDINARY SHARES

1,967,462.68

2,241,924.37
FOREIGN ORDINARY SHARES

279,741.38

267,986.94
TOTAL FGN SECURITIES

12,960,020.11

14,114,343.22
* FED. GOVT BONDS (HTM)

12,221,035.89

12,015,063.50
* FED. GOVT BONDS (AFS)

1,248,569.37
* TREASURY BILLS

399,459.03

704,529.28
* AGENCY BONDS (NMRC)

8,802.08

45,378.34
* SUKUK BONDS (HTM)

114,196.04

79,739.70
* SUKUK BONDS (AFS)

13,917.04
* GREEN BONDS

216,527.07

7,145.99
STATE GOVT SECURITIES

260,102.82

250,855.02
CORP. DEBT SECURITIES

2,207,237.74

2,246,508.38
* CORPORATE BONDS (HTM)

1,436,607.49

1,452,693.58
* CORPORATE BONDS (AFS)

744,163.81

765,896.34
* CORPORATE INFRASTRUCTURE BONDS

15,861.31

27,918.46
* CORPORATE GREEN BONDS

10,605.13
-
MONEY MKT INSTR.

1,913,056.79

2,215,529.02
FIXED DEPOSIT/ BANK ACCEPTANCE

1,482,186.93

1,925,972.96
COMMERCIAL PAPERS

327,346.72

161,161.51
FOREIGN MONEY MKT INSTR.

103,523.13

128,394.55
MUTUAL FUNDS

83,017.70

80,782.52
OPEN/CLOSE FUNDS

67,989.13

58,785.39


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
REITs

15,028.56

21,997.13
SUPRA-NATIONAL BONDS

22,717.60

20,771.23
INFRASTRUCTURE FUNDS

162,488.06

214,325.13
REAL ESTATE

278,442.12

283,619.13
PRIVATE EQUITIES

109,199.65

147,861.87
CASH & OTHER ASSETS

240,745.17

427,839.34
CURRENT NET ASSET VALUE

20,484,231.81

22,512,346.17


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
ACKNOWLEDGMENTS - LIST OF MAJOR CONTRIBUTORS
S/N Name
Organisation
1. Rita I. Sike (PhD.)
Financial Policy and Regulation Department, CBN
2. J. A. Mohammed
Financial Policy and Regulation Department, CBN
3. A. Sylvanus-Dannana
Financial Policy and Regulation Department, CBN
4. L. Mohammed
Financial Policy and Regulation Department, CBN
5. M.C. Akuka
Financial Policy and Regulation Department, CBN
6. M.E. Obiechina (PhD.)
Development Finance Department, CBN
7. S. O. Odeniran (PhD.)
Monetary Policy Department, CBN
8. O.T. Ajulore (PhD.)
Monetary Policy Department, CBN
9. A. A. Akintola (PhD.)
Research Department, CBN
10. B.A. Gaiya (PhD.)
Research Department, CBN
11. A. A. Umaru
Banking Supervision Department, CBN
12. V.N. Orjiakor
Banking Supervision Department, CBN
13. I. Hamman
Statistics Department, CBN
14. A. Salihu
Statistics Department, CBN
15. E.O. Shonibare
Risk Management Department, CBN
16. J. A. Angaye
Risk Management Department, CBN
17. Phebian N. Bewaji
(PhD.)
Financial Markets Department, CBN
18. V.A. Martins
Other Financial Institutions Supervision Department, CBN
19. M.A. Zakari
Other Financial Institutions Supervision Department, CBN
20. A.M. Wanka
Reserve Management Department, CBN
21. M.K. Muazu
Consumer Protection Department, CBN
22. A.G. Zanna
Consumer Protection Department, CBN
23. C. O. Ugwueze
Payments System Supervision Department, CBN
24. O.A. Ojerinde
Banking Services Department, CBN
25. I.A. Adeleke
Banking Services Department, CBN
26. M.K. Muazu
Consumer Protection Department, CBN
27. A.G. Zanna
Consumer Protection Department, CBN
28. S.H. Hassan (PhD.)
Securities and Exchange Commission


FINANCIAL STABILITY REPORT – DECEMBER 2024

Classified as
29. M. Mammada
Nigeria Insurance Commission
30. Bilyaminu Yakubu
National Pension Commission
31. H. S. Kollere
Nigeria Deposit Insurance Corporation

This Report was produced and supervised by the Financial Policy and Regulation
Department in collaboration with other Regulators.

DR. RITA I. SIKE
DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT