Nigeria’s Bad Loan Ratio Hits 8.03% as CBN Forbearance Ends
By Aboki Forex —
Bad loans in Nigeria’s banking sector rose to 8.03 per cent in January 2026. This comes seven months after the Central Bank of Nigeria ended regulatory forbearance on certain credit exposures and single obligor limit breaches.
The figure is contained in the CBN’s January 2026 Economic Report. It shows the industry’s non-performing loans ratio increased by 0.52 percentage point from 7.51 per cent in December 2025.
The ratio now sits above the CBN’s prudential threshold of five per cent. This points to a further decline in asset quality across the banking industry. The apex bank has insisted the sector remains resilient.
The report stated: “Following the bank’s loan reclassification after the withdrawal of forbearance, the non-performing loans ratio rose by 0.52 percentage point to 8.03 per cent compared with the level in the preceding period and was above the 5.00 per cent prudential threshold.”