Zenith Bank, Guaranty Trust Holding Company (GTCO), and FirstHoldCo generated a combined N2.85 trillion in interest income from Treasury bills in 2025. This represents a 43.03% increase from the N1.99 trillion earned in 2024. The surge was driven by sustained high yields on government debt instruments amid tight monetary policy and rising interest rates throughout the year. Treasury bills have become a preferred investment for banks seeking low-risk returns amid economic uncertainty. The Central Bank of Nigeria maintained a hawkish stance in 2025, keeping the Monetary Policy Rate at 27.5%, which supported higher yields on short-term government securities. As a result, Nigerian banks significantly increased their exposure to the instruments. Zenith Bank remained the top earner, with the largest share of the income, followed by GTCO and FirstHoldCo. The performance underscores a broader shift in banking sector revenue models, with interest on government debt now outpacing lending to private enterprises. This trend reflects ongoing challenges in credit extension within the real sector, where high rates and economic volatility deter borrowing.
The fact that three banks pulled in N2.85 trillion from government paper in a single year lays bare a quiet crisis in Nigeria's financial system — banks are making more money doing nothing than by funding businesses. Zenith, GTCO, and FirstHoldCo aren't outliers; they're rational actors in an economy where lending to the government is safer and more profitable than financing factories, farms, or startups.
This shift didn't happen by accident. With inflation hovering near 30% and the Central Bank holding rates at 27.5%, the yield on Treasury bills became irresistible. Meanwhile, private sector credit growth stagnated, as businesses face borrowing costs that make investment unviable. The result is a financial ecosystem where banks are rewarded for parking money with the state, not for taking risks on the real economy.
For ordinary Nigerians, especially small business owners and entrepreneurs, this trend means tighter access to capital. As banks earn risk-free billions from government debt, the private sector chokes on high rates and limited credit. The economy becomes a loop: government borrows more, pays higher interest, funds its spending, and banks grow richer — while production, jobs, and growth stall.
This is not an anomaly. It's the pattern of the past five years, where monetary policy and fiscal demand have turned banks into government financiers, not economic catalysts.
