The sharp depreciation of the naira between 2023 and 2024 significantly increased the contribution of foreign subsidiaries to the earnings and asset base of Nigerian banking groups, according to a new report by Fitch Ratings.
The report, titled African Banking Groups’ Cross-Border Expansion to Continue and published on September 14, 2026, examined 14 African banking groups with operations in at least five African countries and total consolidated assets exceeding 15 billion dollars as of the end of 2025. Among the institutions reviewed were four Nigerian lenders – Access Bank Plc, United Bank for Africa Plc, Zenith Bank Plc and First HoldCo Plc.
Fitch noted that the contribution of foreign subsidiaries to African banking groups has been rising steadily over the past decade, with the trend accelerating after the COVID-19 pandemic as lenders sought growth opportunities and geographic diversification. The agency said the 70 percent devaluation of the Nigerian naira in 2023 to 2024 further amplified the trend for Nigerian banks.
According to the report, foreign subsidiaries accounted for 77 percent of UBA’s net income in 2025, compared with 44 percent in 2024. Fitch attributed the sharp increase partly to weaker domestic performance during the year. Foreign operations also represented 52 percent of UBA’s total assets at the end of 2025.
The rating agency said contributions from foreign subsidiaries to net income and total assets will increase further in the medium term, driven by acquisitions, expansion into new markets and the search for diversification away from domestic macroeconomic risks.
