Eight Nigerian banks raised their investments in securities to a total of N41.78 trillion in Q1 2025, up from N41.10 trillion at the close of December 2024, according to reports.

This growth, amounting to about 1.65%, was derived from the financial reports of major institutions, including Ecobank, Guaranty Trust Holding Company, Zenith Bank, Wema Bank, Access Holdings, First HoldCo, FCMB Group, and United Bank for Africa. Investment securities are assets banks purchase to generate returns or meet regulatory obligations, not for active trading.

United Bank for Africa (UBA) led with N13.13 trillion in investment securities as of March 2025, up from N12.53 trillion in December 2024. This total includes N6.21 trillion at fair value through other comprehensive income and N6.92 trillion at amortized cost. Ecobank recorded N11.01 trillion in securities by the end of March 2025, an increase from N10.68 trillion in December 2024.

GTCO's investment securities rose to N4.62 trillion as of March 2025, from N4.15 trillion in December 2024.

The increase includes N2.81 trillion in fair value through other comprehensive income, N1.79 trillion held at amortized cost, and N5.51 billion classified as fair value through profit or loss. Wema Bank's securities stood at N1.05 trillion in March 2025, up from N900.2 billion. This includes N14.76 billion in fair value through other comprehensive income, N40.37 billion in fair value through profit or loss, and N991.9 billion at amortized cost.

Zenith Bank reported N5.11 trillion in securities for March 2025, a slight increase from N5.10 trillion in December 2024.

First HoldCo reported N5.68 trillion in Q1 2025, a decrease from N6.54 trillion at the end of 2024. Access Holdings posted N10.79 billion in investment securities as of March, down from N11.34 billion in December 2024.

FCMB Group reported N1.18 trillion in securities as of March 2025, a slight decrease from N1.19 trillion in December 2024.

Economist and investment expert Vincent Nwani noted that Nigerian banks are increasingly focused on profit-driven investments, despite their original purpose of lending to the economy.

He emphasized that banks are prioritizing low-risk assets like bonds, treasury bills, and commercial papers for guaranteed returns instead of lending, due to the safer nature of these investments. Nwani urged investors not to let their deposits sit idle, as banks use customer funds for investments. He advised them to explore opportunities to earn from their money.

Chief Economist and Managing Editor of Proshare, Teslim Shitta-Bey, explained that the high returns on government securities, like treasury bonds, have made them more attractive than lending to the private sector, due to their low-risk nature. He noted that, despite the Central Bank of Nigeria's 50% cash reserve ratio, banks are managing their liquidity carefully.

Shitta-Bey observed that banks are shifting away from high-risk lending and focusing on safer investments, leading to slower growth in private sector credit. He concluded that credit growth in the private sector is likely to remain sluggish.