NPL Rises To 9.85% As Banks Exit Regulatory Forbearance

The non-performing loans (NPLs) ratio in Nigeria’s banking sector rose sharply to 9.85 per cent in February 2026, exceeding the regulatory benchmark of 5.0 per cent, following the withdrawal of regulatory forbearance and the reclassification of loans, the Central Bank of Nigeria (CBN) has said.
According to the CBN’s February 2026 Economic Report, the deterioration in asset quality occurred despite the banking industry maintaining strong liquidity and capital buffers.
The report stated that, “Asset quality, however, weakened following the withdrawal of regulatory forbearance, as loan reclassification drove the non-performing loans (NPLs) ratio higher by 1.82 percentage points to 9.85 ...