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In this issue

Editorial Focus: Rising Impairment Costs Test Wema Bank’s Risk Strategy
Wema Bank’s N11 billion impairment charge in the first nine months of 2025 underscores growing strain in Nigeria’s credit market as the Central Bank tightens post-forbearance rules. While the figure marks a modest 6% decline from last year, the heavy N10 billion provisioning in Q3 signals deepening asset-quality pressure within its loan book.
The broader industry trend is equally worrisome — banks collectively set aside nearly N2 trillion in provisions, up 49% year-on-year, reflecting both aggressive lending and mounting credit risks amid economic uncertainty. For Wema Bank, the challenge lies in balancing its 30% loan expansion with prudent risk management, especially as regulatory curbs on banks still under forbearance restrict dividend payouts and offshore growth.
As the CBN phases out pandemic-era relief, the spotlight shifts to banks’ ability to sustain profitability without overexposure. Wema’s experience highlights the urgent need for tighter credit oversight, stronger capital buffers, and improved asset diversification to safeguard resilience in a tightening monetary landscape.