Nigeria’s largest lenders, including Zenith Bank Plc and United Bank for Africa (UBA), are facing mounting financial pressure after collectively spending about N442 billion on levies to the Asset Management Corporation of Nigeria (AMCON) in the first half of 2025.
The latest figure marks a 34 percent increase from the N330 billion paid during the same period last year, highlighting the growing cost burden on banks amid weakening profitability.
Rising Costs and Slowing Growth Weigh on the Sector
The higher AMCON expenses come at a time when banks are struggling with elevated funding costs, slower loan growth, and a decline in revaluation gains — factors that have eaten into their half-year earnings.
Analysts say the spike in the levy, which is imposed to help AMCON recover bad loans purchased during Nigeria’s banking crisis, underscores the difficult operating environment for lenders navigating inflationary pressures and tighter liquidity.
Zenith Bank, UBA, and six other tier-one and tier-two banks are among those most affected by the levy’s impact on their bottom line.
The combined financial reports show that while interest income rose moderately, profit growth slowed, and operational costs surged due to the AMCON charge and rising cost of deposits.
Industry observers note that unless the Central Bank of Nigeria (CBN) and AMCON review the levy framework, the burden may continue to limit banks’ ability to expand credit to the real sector and improve capital buffers in the months ahead.
