Banks Borrow $7.8 trillion from IFC and Afrexim to Meet Lending Needs Across Africa

Kayode Tokede 

In an effort to satisfy lending demands across Africa and finance Nigeria’s infrastructure projects, ten leading Nigerian banks borrowed a total of N7.81 trillion (current and non‑current) from the Central Bank of Nigeria (CBN), the International Finance Corporation (IFC), and other international lenders during the 2025 financial year.

This represents a 20.2 percent decrease compared with the N9.74 trillion that the same banks borrowed in 2024.

Banking institutions in the country continue to secure funds from local and international sources such as the African Export‑Import Bank (Afrexim), the African Development Bank, and JP Morgan Securities Limited to support major projects within Nigeria and other African markets.

They also tap CBN facilities, including the Shared Agent Network Facility (SANEF) and the Non‑Oil Export Stimulation Facility (NESF), to back targeted sectors.

The banks are: Access Holdings, Zenith Bank Plc, United Bank for Africa Plc (UBA), First HoldCo Plc and Guaranty Trust Holding Company (GTCO).

Other participants include Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings, Wema Bank Plc, and Sterling Financial Holdings Company Plc.

THISDAY’s investigation showed that Access Holdings led the group in borrowing from international lenders and the CBN in 2025, followed by First HoldCo and UBA.

Access Holdings reported long‑ and short‑term borrowing of about N2.03 trillion from Afreximbank and other institutions in 2025, a 15.6 percent drop from the N2.4 trillion recorded in 2024.

In 2025, the pan‑African bank borrowed approximately N448.34 billion, including a $300 million term loan from Afrexim in July 2025. This figure was the highest borrowing amount among the banks reviewed.

The lender explained in its audited 2025 results that the facility has an initial tenor of six months, with an option to extend up to three years, and is priced at a floating interest rate of Term SOFR plus a margin of four percent per annum.

First HoldCo reported N1.94 trillion in borrowings in 2025, a 25 percent increase over N1.56 trillion in 2024, while UBA posted N924 billion in borrowings in 2025, a decline of 34 percent from N1.39 trillion in 2024.

According to THISDAY, GTCO had the lowest borrowing from the CBN and international finance companies in 2025.

Specifically, GTCO declared N82.24 billion in borrowing for 2025, about a 73.47 percent decline from N310.02 billion in 2024. The reduction was largely due to N64.1 billion from the CBN, compared with N288.4 billion reported in 2024.

“The amount of N64,114,279,000 (December 2024: 288,376,276,000) represents the outstanding balance on Due to CBN, which represents borrowings with the financier CBN for a tenor of 2 years with a maturity date of 22nd of March 2026. The interest rate on the facility is 17%,” GTCO explained in its 2025 results and accounts released to the Nigerian Exchange Limited (NGX).

Zenith Bank’s borrowing was N651.16 billion in 2025, a 68 percent decline from N2.05 trillion in 2024, while Fidelity Bank reported N888.95 billion in borrowings in 2025, a 4.4 percent decline from N929.6 billion in 2024.

Other lenders borrowing in 2025 were: FCMB Holdings – N365.57 billion; Stanbic IBTC Holdings – N545.3 billion; Wema Bank – N113.6 billion; and Sterling Bank – N231.44 billion.

Commenting, Vice President of Highcap Securities, Mr. David Adnori, said that Access Holdings needed to borrow from international financial institutions to meet its lending needs across the continent and beyond.

He noted that Access Holdings’ access to these facilities demonstrates the confidence that financial institutions and investors have in the bank’s management.

He added that Access Holdings’ borrowing, among others, is a profitable move for management. “It tends to boost liquidity and gives the bank more capability to lend to targeted sectors,” he said.

Adnori further said that banks need to access these funds from international financial institutions and CBN facilities to boost earnings and expand lending to critical sectors.

He observed that most monetary agencies prefer to lend these funds to banks, given their track records in Africa, especially in Nigeria, where they thrive in a challenging operating environment.