Nigeria’s leading commercial banks have expanded their balance sheets at a significantly faster pace than South Africa’s largest lenders in local-currency terms, reflecting stronger asset accumulation, increased lending capacity and broader market expansion.

The Nigerian Banks Asset Growth trend shows that the country’s six largest lenders by assets, including Access Bank, Ecobank, United Bank for Africa (UBA), Zenith Bank, First Holdco and Guaranty Trust Holding Company (GTCO), recorded a combined asset increase of 272 per cent over five years.

Also read: GTBank wins Nigeria’s Best Digital Bank 2026

Their total assets rose from N57.22tn in the first quarter of 2022 to N213tn by the first quarter of 2026, according to market analysis.

By comparison, South Africa’s major banking institutions recorded slower expansion, with their combined assets growing by 40 per cent from R8.60tn in Q1 2022 to R12.06tn in Q1 2026.

Analysts attributed the stronger growth among Nigerian lenders to wider operational expansion, rising deposits, increased customer numbers and entry into new markets.

Economist and former central banker Chukwunonso Ihuoma said the growth reflected increased investment and broader banking activities.

“As they increase their branch networks, customer base and investments, their asset sizes and asset quality rise,” Ihuoma said.

Despite the rapid expansion, South African banks remain substantially larger when measured in US dollar terms. Nigeria’s six biggest banks held combined assets estimated at $154bn in Q1 2026, compared with about $664bn for South Africa’s major lenders.

Emerging markets analyst Ike Ibeabuchi cautioned that rapid growth should be managed carefully, noting that mature financial markets naturally experience slower expansion over time.

“When a market becomes more mature, its growth becomes slower. It does not mean the market has tanked,” Ibeabuchi said.

Among Nigerian lenders, Access Bank recorded the strongest expansion, growing its assets by 339 per cent to N53.1tn in Q1 2026 from N12.08tn five years earlier, strengthening its position as the country’s largest bank by assets.

Ecobank followed with a 336 per cent increase, reaching N48.83tn, while UBA’s assets climbed 273 per cent to N33tn from N8.89tn.

Zenith Bank recorded a 210 per cent increase, with assets rising to N32.012tn from N10.32tn. First Holdco expanded by 192 per cent to N26.88tn, while GTCO grew by 239 per cent to N18.7tn.

The banking sector’s growth outlook has also been shaped by the Central Bank of Nigeria’s recapitalisation programme, which concluded on March 31, 2026.

Nigerian banks raised N4.65tn in fresh capital, with domestic investors contributing 72.55 per cent and international investors providing the remaining 27.45 per cent.

Analysts expect the impact of the recapitalisation drive to become more visible from late 2026 into 2027, with potential improvements in lending capacity, asset quality, profitability and financial strength.

Ibeabuchi said the additional capital would influence several areas of banking performance.

“It will not only be felt in asset size but also in asset quality, revenue, profits, deposits, loan growth, capital adequacy growth, credit ratings and corporate governance,” he said.

Also read: GTBank wins Nigeria’s Best Digital Bank 2026

The latest figures highlight the growing scale of Nigeria’s banking industry, even as the sector continues to operate in a more competitive and increasingly regulated financial environment.