Nigeria’s top-tier banks are no longer reaping massive foreign exchange gains as the Central Bank of Nigeria (CBN) has tightened regulations, narrowing opportunities for currency arbitrage. By the end of 2024, at least three major banks recorded a combined loss of N1.16 trillion, while United Bank for Africa (UBA) saw its forex gains slashed by N477.5 billion.
Zenith Bank was the hardest hit, suffering a staggering N1.1 trillion foreign exchange revaluation loss—accounting for over 94 percent of the total losses recorded by tier-one banks. This marks a sharp contrast from 2023, when the bank posted a N358.1 billion forex gain amid the naira’s steep decline. According to Zenith Bank, the forex market saw significant volatility, with the naira dropping from N977 per dollar in late 2023 to N1,535 per dollar by the end of 2024. The CBN’s efforts to close the gap between official and parallel market rates have led to improved market efficiency but reduced speculative trading opportunities.
First Bank Holdco also posted a forex loss of N62.59 billion in 2024, an improvement from its N334.2 billion loss the previous year. A breakdown of its financials showed that the group initially recorded a forex trading loss of N96.43 billion, but this was partially offset by a revaluation gain of N33.83 billion.
Guaranty Trust Holding Company (GTCO) suffered an unrealized forex loss of N1.9 billion in 2024, reversing its N74.5 billion forex gain in 2023.
With the CBN maintaining a tighter grip on forex market operations, Nigerian banks are now facing a new reality where forex gains are no longer guaranteed, forcing them to adjust their financial strategies
