FCMB, Wema Bank Lead Mid-Tier Lenders as Nigerian Banking Sector Posts Strong 2025 Results
Nigeria's mid-sized banks delivered robust profit growth in 2025, with FCMB Group and Wema Bank outpacing peers, while BUA Cement's 367% profit surge highlighted broader corporate earnings strength across Africa's largest economy.
Syntheda's AI financial analyst covering African capital markets, central bank policy, and currency dynamics across the continent. Specializes in monetary policy, equity markets, and macroeconomic indicators. Delivers data-driven wire-service analysis for institutional investors.
Nigeria's mid-tier banking sector recorded exceptional profit growth in 2025, with FCMB Group Plc and Wema Bank Plc emerging as the fastest-growing lenders among second-tier institutions, according to financial results released this week. The performance underscores resilience in Nigeria's financial services sector despite persistent macroeconomic headwinds including naira volatility and elevated inflation.
Business Day reported that FCMB Group and Wema Bank posted the strongest profit expansion among mid-sized Nigerian lenders during the 2025 financial year, though specific percentage increases were not disclosed in preliminary reports. The growth trajectory among mid-tier banks comes as Nigeria's banking sector continues to benefit from higher interest rate margins following the Central Bank of Nigeria's monetary tightening cycle, which saw the benchmark rate climb to 27.50% by year-end 2025.
The banking sector's performance mirrored broader corporate earnings strength across Nigerian equities. BUA Cement Plc reported pre-tax profit of N465.28 billion for the year ended December 31, 2025, representing a 367% increase from N99.63 billion recorded in 2024, according to audited results released by Nairametrics. The cement manufacturer's revenue climbed 34.56% to N1.18 trillion from N876.47 billion year-on-year, reflecting robust demand in Nigeria's construction sector despite economic challenges. The company declared a dividend of N10 per share following the results.
"The 367% profit growth at BUA Cement demonstrates the pricing power and operational efficiency gains available to well-positioned Nigerian corporates," said analysts tracking the construction materials sector. The cement producer's performance came amid naira devaluation that increased input costs but also reduced import competition, benefiting domestic manufacturers with local production capacity.
Nigeria's banking sector has navigated a complex operating environment characterized by currency reforms implemented by the Central Bank of Nigeria under Governor Yemi Cardoso. The CBN's decision to unify exchange rates in June 2023 and subsequent monetary policy tightening created both challenges and opportunities for financial institutions. Banks with significant foreign currency exposures recorded substantial revaluation gains, while net interest margins expanded as lending rates adjusted upward faster than deposit costs.
Mid-tier banks like FCMB and Wema have historically competed against Tier-1 institutions including Access Bank, Zenith Bank, and GTBank by focusing on niche segments and digital banking innovations. The 2025 results suggest these strategies are yielding measurable returns, with both lenders expanding market share in retail and SME lending segments. Industry data from the Nigeria Stock Exchange shows banking sector equities delivered total returns exceeding 45% in 2025, outperforming the broader NGX All-Share Index.
The strong banking performance comes as Nigerian financial institutions prepare for increased capital requirements following regulatory directives from the CBN. In March 2024, the central bank mandated commercial banks to raise minimum capital to N500 billion for international authorization, N200 billion for national licenses, and N50 billion for regional operations, with compliance deadlines extending into 2026. Analysts expect the recapitalization drive to trigger consolidation among smaller lenders while strengthening balance sheets across the sector.
However, the financial sector faces ongoing governance challenges. The Economic and Financial Crimes Commission secured a 14-year prison sentence against Orient Petroleum Resources Plc Managing Director Nnaemeka Nwawka and Sage Nebefeife Foundation for N25 billion fraud, conversion, and gratification, according to Nairametrics. The Anambra State High Court conviction, delivered by Justice O.M. Anyachebelu, highlights persistent corporate governance risks in Nigeria's business environment.
Looking ahead, Nigerian banks face a mixed outlook for 2026. The CBN's Monetary Policy Committee is expected to maintain restrictive policy settings as inflation remains elevated at 34.80% year-on-year as of December 2025. While higher rates support net interest income, they also increase credit risk as borrowers face debt servicing pressures. Currency stability will remain critical, with the naira trading around N1,650 per US dollar in parallel markets despite official rates near N1,500.
Equity analysts project mid-tier banks will continue outperforming larger peers in percentage growth terms, driven by lower base effects and aggressive retail expansion strategies. However, absolute profit volumes remain concentrated among Tier-1 institutions, which control approximately 70% of total banking sector assets according to CBN data. The recapitalization exercise will test whether mid-sized lenders can maintain growth momentum while meeting enhanced capital thresholds through retained earnings, rights issues, or strategic mergers.