Feature/OPED
Richer Banks, Poorer Economy: The Hidden Crisis in Nigeria’s Financial System
By Blaise Udunze
Across Africa, banks are getting bigger but not necessarily better. From South Africa’s Standard Bank to Morocco’s Attijariwafa and Egypt’s National Bank, financial institutions are boasting record balance sheets, higher Tier 1 capital, and growing regional footprints. According to African Business magazine’s 2025 ranking of the continent’s top 100 banks, Africa’s total Tier 1 capital climbed to $126 billion, up from $120 billion in 2024.
But behind this glowing façade of balance sheet expansion lies a troubling irony, especially in Nigeria. Despite being home to some of the continent’s most visible lenders, Nigeria is missing from the International Monetary Fund’s latest list of Africa’s fastest-growing economies. While Nigerian banks such as Access Bank, Zenith Bank, UBA, and FBN Holdings feature among Africa’s top 20 in assets, their impact on real economic growth remains painfully limited.
In simpler terms, Nigeria’s banks are becoming richer without making the economy stronger.
It is one of the defining contradictions of modern Nigerian finance, where a banking sector keeps ballooning in size even as the real economy struggles to breathe. The IMF projects Nigeria’s GDP growth at 3.9 percent in 2025, below the 6-8 percent threshold that defines Africa’s fastest-growing economies. Meanwhile, smaller nations such as Rwanda, Benin, and Côte d’Ivoire are racing ahead, driven by reforms, industrial growth, and investment-friendly policies.
So why is Africa’s largest economy growing so slowly even with “Africa’s biggest banks” at its helm? The answer lies in how these banks make their money and how little of it trickles into productive enterprise.
Nigeria’s leading banks have swollen their balance sheets largely through asset revaluations, foreign currency adjustments, and customer deposits that sit idle or are channeled into risk-free government securities. What looks like growth on paper often reflects inflationary asset repricing, not expanded lending to manufacturers, agribusinesses, or small and medium enterprises (SMEs).
Three quarters of the industry’s celebrated “assets” are actually liabilities owed to the public. These are deposits that banks temporarily hold, not capital they generated or invested productively. This dependency on depositors’ funds reveals a system that looks rich in assets but is, in essence, shallow in innovation and weak in capital depth.
A banking system overly reliant on deposits is inherently fragile. Deposits are short term and confidence sensitive and can flee quickly during periods of policy uncertainty. Unlike equity or long term capital, they offer little cushion against shocks. This overdependence creates a false picture of liquidity but hides structural weakness. Nigeria’s banks may look stable, but their foundations are vulnerable, like a tower built on shifting sands of depositor confidence rather than the rock of sustainable capital formation.
Loans to the manufacturing and agricultural sectors remain a small fraction of total credit, while lending rates often hover above 27 percent. Many small businesses that form the backbone of job creation and innovation still cannot access affordable financing. Instead, banks have mastered the art of financial intermediation without real interconnection, mobilizing deposits but not transforming them into engines of growth.
This disconnect reveals a deeper issue with weak capital efficiency. In a healthy financial system, deposits are converted into productive loans that stimulate investment, create jobs, and boost exports. But in Nigeria, the ratio of bank loans to GDP remains among the lowest in Sub-Saharan Africa. Banks appear more comfortable storing wealth than stimulating enterprise. Treasury bills and government bonds, with minimal risk and decent yields, have become the preferred playground for Nigeria’s banking giants. The result is a financial system that thrives on fiscal inertia rather than productive dynamism.
Contrast Nigeria’s sluggish growth with the dynamism in East Africa, where banks like Kenya’s Equity Group and KCB are expanding aggressively, driving credit to real sectors and supporting regional trade. East Africa now contributes 21 banks to Africa’s top 100, up from just 13 in 2022, reflecting genuine growth in financial inclusion and productive lending. While Nigeria’s banks chase continental rankings, Kenya’s and Rwanda’s banks are quietly fueling economic revolutions.
Nigeria’s exclusion from the IMF’s list of Africa’s fastest-growing economies is symbolic. It tells a story of a giant whose growth is increasingly superficial. The IMF praised countries like Rwanda and Benin for fiscal discipline, macroeconomic stability, and structural reforms, as these are all areas where Nigeria continues to struggle. Despite policy adjustments and modest improvements in non-oil sectors, Nigeria’s economy remains shackled by inflation, currency instability, and policy uncertainty. These same constraints discourage banks from taking real sector risks.
In effect, the financial system mirrors the broader economy and is large in size, yet underperforming in substance. When banks announce trillion-naira asset bases, it makes for good headlines but poor development economics. The irony is that asset expansion without capital productivity is like pumping air into a balloon, which is impressive in size but fragile in substance.
While the Central Bank of Nigeria’s Governor, Yemi Cardoso, insists that the nation’s economic reforms are “yielding visible results” and placing the country “on the path to stability, inclusiveness, and innovation-driven growth,” evidence on the ground paints a more sobering picture. The CBN’s optimism, though politically convenient, contrasts sharply with the structural realities of Nigeria’s financial system and the broader economy.
If reforms were truly delivering inclusive and innovation driven growth, it would be reflected in stronger credit access, industrial productivity, and improved living standards, not just in favourable rhetoric at global meetings. Yet, Nigeria’s banking sector remains dominated by balance sheet expansion rather than productive lending. Three quarters of the industry’s celebrated “assets” are actually liabilities to public deposits temporarily held, not capital generated through innovation or investment in the real economy.
This disconnect between financial growth and real-sector development underscores a deeper fragility. Banks continue to rely heavily on short-term deposits while shying away from financing manufacturing, agriculture, and small enterprises with the engines of inclusive growth. The result is an economy where the numbers look impressive on paper, but households and industries still struggle with high borrowing costs, limited credit, and declining purchasing power.
Far from demonstrating reform-driven resilience, Nigeria’s economic structure remains hollow at the core of a system rich in nominal assets but poor in capital depth and innovation. Macroeconomic stability cannot be claimed when inflation hovers around 18.02 percent, foreign investment inflows stagnate, and job creation lags far behind population growth.
In essence, what the CBN presents as progress is, in many respects, statistically false if stability is achieved through monetary tightening and exchange rate adjustments rather than genuine economic transformation. Until reforms translate into tangible outcomes of affordable credit, industrial renewal, and sustainable job creation, the claims of inclusiveness and innovation-driven growth will remain more aspirational than real.
For Nigeria’s regulators, analysts, and policymakers, the question is no longer how large the banks’ assets appear, but what those assets are doing for the economy. True strength must come from innovation in financial intermediation, capital efficiency, and credit diversification; support for real sector growth; and regional competitiveness on the African and global stage.
For Nigerian banks to translate asset expansion into real economic impact, the next frontier must be purposeful intermediation, where financial growth feeds productive enterprise, not just paper wealth. That begins with rethinking the credit model by lending based on business potential and cash flow viability, not just collateral. By partnering with fintechs and development institutions, banks can use data driven credit assessments to reach small manufacturers, agribusinesses, and innovators who drive job creation.
Beyond lending, true strength will come from building deeper capital bases and reducing dependence on short-term deposits. Banks must raise long-term funds through bonds, equity, and partnerships with pension and insurance institutions so they can finance industrial and infrastructure projects sustainably. Regulators, too, must align incentives with development by rewarding banks that channel credit into productive sectors and penalizing those that merely recycle deposits into government securities.
Ultimately, Nigeria’s banking future depends on a mindset shift from comfort in liquidity to confidence in innovation. The country does not need banks that only count wealth but those that create it. When balance sheet expansion begins to translate into accessible credit, inclusive growth, and industrial renewal, Nigeria’s banks will cease to be symbols of inflated success and become true instruments of national transformation.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: bl***********@***il.com
Feature/OPED
The Role of TV in Preserving African Stories and Identity
Scroll through social media today, and you will notice something interesting: everyone is either reacting to a series, quoting a movie line, or debating a character as though they personally know them. Beneath the memes and binge-watch culture, however, lies something deeper. Television remains one of the most powerful tools shaping how Africans see themselves, remember their history, and tell their own stories. In a continent as diverse and expressive as Africa, that matters more than ever.
TV as a Cultural Archive, Not Just Entertainment
Long before streaming algorithms began shaping our viewing habits, television was already preserving African identity. From Nollywood dramas that capture the rhythm of everyday Lagos life to documentaries exploring Maasai traditions and Ghanaian folklore, TV has served as a living archive of the continent’s stories.
It preserves more than entertainment; it preserves language, culture, humour, values, and shared experiences. Unlike fleeting social media content, television allows stories to unfold with depth, exploring the realities of family, tradition, ambition, and modern African life without reducing them to stereotypes. That is the power of TV: preserving not just stories, but perspective.
Why Representation on TV Still Matters
There is a subtle but important truth: if people do not see themselves on screen, they may begin to believe their stories are not worth telling. This is why African TV content is more than entertainment; it is affirmation.
Seeing a character who speaks like you, struggles like you, or celebrates like your community does something powerful. It validates identity and challenges outdated narratives that have historically defined Africa through external lenses.
This is where MultiChoice Group, through platforms such as DStv and GOtv, plays an important role. They do not simply broadcast content; they help distribute cultural memory at scale.
GOtv, DStv, and the Everyday African Viewer
Think about a typical evening in many African homes: the TV is on in the background, someone is laughing at a comedy show, another person is watching a local series, and someone else is catching up on the news. That shared viewing experience remains very real.
Through platforms such as DStv and GOtv, African households are exposed to a blend of local storytelling and global content. More importantly, they have helped amplify African-produced content by bringing Nollywood films, African reality shows, talk shows, and documentaries into mainstream rotation.
It is not just about access. It is about visibility.
A young filmmaker in Lagos today is more likely to believe their story matters because they have seen similar stories broadcast widely. A child in Accra grows up hearing familiar accents and seeing environments that look like their own on screen, not as exceptions, but as the norm.
TV Is Also Shaping Modern African Identity
African identity is not static; it is evolving. Television reflects that evolution in real time.
Today, audiences see:
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Young Africans balancing tradition and modern dating culture
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Stories tackling mental health in African households
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Fashion and music influences spreading through TV series
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Political satire shaping public conversation
Conversations that were once confined to homes are now being explored on screen, giving audiences the language to discuss issues that were previously unspoken.
In many ways, television is doing what oral tradition has always done: passing stories, values, humour, warnings, and history from one generation to the next. The difference is that today’s griots are writers, directors, and broadcasters.
The Future: From Watching to Owning Our Narratives
The next stage of African storytelling is not just about being seen; it is about ownership.
As more African creators produce content and platforms continue to invest in regional storytelling, television becomes more than a mirror. It becomes a tool for shaping how Africa is represented to itself and to the world.
While streaming continues to grow, television, particularly accessible platforms such as GOtv, remains one of the most effective ways to reach everyday audiences across different income levels and regions. After all, storytelling only matters if people can access it.
African stories are not new. They have always existed in families, on streets, in markets, in history books, and through oral traditions. What television has done, and continues to do, is give those stories a stage wide enough for millions to experience them at once.
The next time you watch a local series or documentary on DStv or GOtv, remember that you are not just being entertained. You are participating in the preservation of African identity itself.
Feature/OPED
The Future of AI in Nigerian SMEs: Overcoming Barriers to Implementation
By Kehinde Ogundare
Ask a tech entrepreneur in San Francisco what AI means for their business, and they are likely to talk about competitive advantage, product differentiation, and scale. Ask a small business owner in Kano or Onitsha the same question, and the conversation shifts entirely.
For many Nigerian SMEs, the priority is keeping the lights on, managing costs, and finding sustainable ways to grow in a challenging economic environment. This difference in perspective explains why the global AI conversation, often shaped by assumptions about stable infrastructure, deep capital, and abundant technical talent, frequently fails to address the realities facing Nigerian SMEs.
This matters because Nigerian SMEs are not a peripheral concern. In 2024 alone, MSMEs contributed 46.32% to Nigeria’s GDP, accounting for 96.9% of businesses and 87.9% of employment. These businesses are the backbone of the Nigerian economy, and if AI is going to mean anything for Nigeria’s development, it has to work for them in the daily conditions they actually operate in.
However, research drawing on empirical data from 144 Nigerian SMEs found that inadequate infrastructure, low digital literacy, skills shortages, and regulatory gaps are collectively preventing them from meaningfully engaging with AI. Awareness of AI is high and growing. What is missing is a clear and honest conversation about what adoption actually requires in this specific context. The barriers are real, but none of them are insurmountable. The question is whether the tools, pricing models, and support structures being offered to Nigerian SMEs are designed with those barriers in mind, or whether they have been built for another market entirely.
Subscription models making AI affordable for small businesses
When most small business owners hear “AI,” they imagine expensive software, specialist consultants, and a hefty upfront bill.
That assumption is not entirely wrong, but it describes a particular way of buying technology, not AI itself. The shift that makes AI genuinely accessible at the SME level is the move away from large, one-time capital purchases towards tools that charge a predictable monthly subscription. Businesses can pay for what they use, scale back when necessary, and avoid the debt that a major technology investment can create.
The deeper opportunity here is consolidation. Many SMEs are already spending money across multiple disconnected tools—one for invoicing, another for customer records, another for stock tracking—none of which talk to each other. An integrated platform that handles several of these functions together, with AI built in, can actually cost less than the sum of those separate subscriptions while giving business owners a clearer picture of their operations.
With margins already under pressure, any technology a business adopts needs to visibly show an increase in productivity or bottom line. Subscription-based, integrated platforms, priced transparently and honestly, are the model that best fits this reality.
Infrastructure challenges demand a mobile-first approach
No conversation about technology in Nigeria is complete without confronting the infrastructure problem, and AI is no exception. Nigeria continues to face major infrastructure barriers, including limited broadband access, unreliable power supply, and high data costs, all of which constrain deeper AI adoption. These are structural features of the operating environment that any sensible technology strategy must account for today.
The electricity situation alone is significant. The World Bank estimates that the lack of stable electricity costs Nigeria’s economy approximately $26.2 billion annually, equivalent to about 2% of GDP, forcing many businesses to run on expensive diesel generators. That cost ripples outward.
In practical terms, AI tools built for Nigeria cannot assume a stable broadband connection or a computer that is always powered on. The tools that will actually get used are the ones that work on a smartphone, consume minimal data, and can function offline when connectivity drops, syncing back up when it returns. The mobile phone is already how many Nigerian SME owners run their businesses. AI that meets them there, rather than demanding infrastructure they do not have, is AI that has a genuine future in this market.
The direction is clear: build capability from within, using tools that make that possible. Recent AI performance research reveals that 64% of African workers are already actively using AI at work, signalling massive grassroots readiness and driving forward-thinking organisations across Nigeria, Kenya, and South Africa to aggressively prioritise internal upskilling frameworks to bridge the talent gap.
As the policy groundwork is being laid, the commercial ecosystem is beginning to respond. What remains is a clear-eyed acceptance that AI tools built for this market need to look different from those built for markets with different realities. Low cost, low bandwidth, and usability for non-technical people are not modest ambitions; they are the actual requirements. Build for those realities, and AI has a real future in Nigeria’s SME economy.
Feature/OPED
When Leaders THRIVE: Yetunde B. Oni’s Candid Counsel to Lateef Jakande Leadership Academy
Union Bank’s Managing Director and Chief Executive Officer sat with 30 of Nigeria’s most promising young leaders for a frank conversation on character, relationships and the discipline of growth.
Out of 25,000 applicants, only 30 earned a place. That single figure tells you how rare the room was when Yetunde B. Oni, Managing Director and Chief Executive Officer of Union Bank of Nigeria, recently sat down with a cohort of the Lateef Jakande Leadership Academy.
The Academy, a Lagos State Government initiative established in honour of Alhaji Lateef Kayode Jakande, the state’s first civilian governor, exists to raise a generation of ethical and capable young leaders. Its fellows are drawn from across professions, sectors and ethnicities, and shaped through a fellowship facilitated by the Africa Leadership Initiative, West Africa (ALI WA), whose work on values and principled leadership has become a quiet engine behind some of the country’s most thoughtful emerging talent.
It was into this gathering that Mrs Oni brought not a corporate address, but a conversation. Honest, personal and at times disarming, she spoke about the philosophies that have carried her through a career spanning more than three decades, the setbacks she has had to surmount, and the values that opened doors she never expected to walk through.
She gave them a framework to hold on to. She called it THRIVE.
The six principles
T — Take ownership of your relationships. Leadership, she argued, begins with the deliberate stewardship of the people around you. Relationships are not incidental to a career. They are infrastructure.
H — Honour God. She spoke openly about faith as a steadying force, an anchor that keeps ambition tethered to something larger than the self.
R — Recharge and refresh. Mental and physical health, she insisted, are not luxuries to be deferred until the work is done. Leaders who neglect their well-being eventually have less to give.
I — Invest in your growth. Continuous and heavy investment in personal development is, in her telling, the price of staying relevant. The learning never ends.
V — Value your work. She pressed the fellows on identity and brand. What do you stand for? Do you create value? Who, in truth, are you? The questions were not rhetorical.
E — Embrace setbacks. Failure, she said, is not the opposite of progress but a part of it. The leaders who endure are the ones who learn to metabolise disappointment rather than be defeated by it.
The people behind the leader
If one theme threaded the entire conversation, it was relationships. Mrs Oni was candid that she did not arrive at the top of Nigerian banking alone. She credited the steady support of family, her parents and her husband, alongside the mentors, friends, coaches and sponsors who shaped her at different stages.
She drew a sharp and useful distinction between a mentor and a coach, two roles often conflated and rarely understood, and she traced much of her progress back to a foundation of Nigerian cultural values: hard work, honesty and integrity, courtesy and respect. These, she told the fellows, are not relics. They are the very qualities that have earned her trust and opened doors throughout her journey.
“You need people,” was the message, delivered without sentiment. Relationships, she explained, must be managed and nurtured with the same seriousness one brings to any other discipline. Time must be managed with equal care.
On believing, and risking
Perhaps the most resonant moment came when Mrs Oni spoke about self-belief. She admitted that becoming the MD/CEO of Standard Chartered Bank, Sierra Leone, did not cross her mind – not because she was unqualified, but because she didn’t think she would get it. Encouraged by her husband, she applied anyway, and she got it!
That appointment would later see her make history as the first woman to lead a Standard Chartered Bank operation in her market.
The Union Bank of Nigeria appointment told a similar story. She had not even known the position existed after the CBN’s intervention. It came to her through relationships; through the quiet networks of people who knew her work and recommended her name while she was unaware in faraway Sierra Leone.
The lesson she left with the fellows was unambiguous. Believe in yourself. Take the risk. Put in for the thing you are not yet certain you deserve, because the opportunity you are waiting for may be one you cannot see, reaching you through someone you have not yet met.
Why this matters
Engagements of this kind are easy to underestimate. They produce no headlines about balance sheets and no immediate line on a financial statement. Yet they speak to something Union Bank has long understood: that institutions endure when they invest in people, and that leadership is built one honest conversation at a time.
Credit is due to the Africa Leadership Initiative, West Africa, whose facilitation of the Lateef Jakande Leadership Academy continues to shape young Nigerians of real promise, and to the Academy itself for the rigour of a process that turned 25,000 hopefuls into 30 fellows ready to lead.
For Yetunde B. Oni, the afternoon was less about what she had achieved than about what she was willing to give: her time, her story and her counsel, offered freely to those coming after her. It is, in the end, what the best leaders do. They light the path for the next generation, and they THRIVE.
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