Nigeria’s banking sector, in 2024, thrived in a stormy economic climate, capitalising on market volatility to deliver record profits. Nine of the country’s listed banking giants—Access Holdings, FCMB, Fidelity, First Bank Holdco, GTCO, Stanbic IBTC, UBA, Wema Bank, and Zenith—posted a combined profit after tax (PAT) of N4.786 trillion, a clear 53.3 per cent increase from the N3.121 trillion recorded in 2023.
Yet, beyond the glittering headline figures lies a deeper story, one told not just by earnings reports, but by the banks’ Value-Added Statements (VAS).
Often overlooked, this financial segment unpacks how the wealth created by each institution was distributed among key stakeholders: governments, employees, shareholders, and capital providers.
In 2024, total value added across these top banks surged to N8.871 trillion, a 66.3 per cent rise from N5.335 trillion the year before. But what’s striking is who took the biggest slice of this financial pie. The Nigerian government emerged as the single largest external beneficiary, surpassing shareholders by a significant margin.
A closer look reveals that tax collections from these banks totaled N1.166 trillion, marking a dramatic 111.4 per cent increase from the previous year. Shareholders, by contrast, received N951.4 billion in dividends—an 87 per cent rise, but still over N200 billion less than what the government took home.
Zenith Bank led the profitability race, reporting a PAT of N1.032 trillion and generating N1.583 trillion in value added. The government received N294 billion from the bank in taxes—the highest across the industry—while shareholders earned N196.7 billion. A hefty N1.085 trillion was retained for reserves and future investments.
GTCO followed closely with a PAT of N1.018 trillion and N1.410 trillion in value added. Taxes to government soared to N248.4 billion—a staggering 257 per cent year-on-year increase—while dividends to shareholders stood at N236.3 billion, slightly trailing government collections.
Access Holdings posted the highest total value added—N1.622 trillion—with a PAT of N642.2 billion. From this, the government claimed N224.8 billion (14 per cent of value added), while N125.3 billion went to shareholders.
First Bank Holdco recorded a value added of N1.593 trillion and PAT of N663.5 billion, with N132.9 billion in taxes paid. Yet shareholders received just N25.1 billion, highlighting a sharp imbalance in wealth distribution.
Fidelity Bank’s PAT rose 179 per cent to N278.1 billion, with value added hitting N508.7 billion. Government collections surged to N95.5 billion, dwarfing shareholder payouts.
Stanbic IBTC reported N408.6 billion in value added. Interestingly, employees received the largest share—N86.7 billion—outpacing both the government (N78.5 billion) and shareholders (N64.8 billion).
FCMB faced a 21 per cent dip in PAT to N73.3 billion, but still increased its value added by 24 per cent to N205.1 billion. Government received N38.6 billion, nearly double what shareholders earned (N21.8 billion).
UBA, with a PAT of N766.6 billion, generated N1.384 trillion in value added. However, 75 per cent of this was retained for business growth and expansion.
Wema Bank, one of the year’s breakout performers, recorded a PAT of N86.3 billion, up nearly 140 per cent, and created N156.7 billion in value added.
In a rare deviation from the trend, shareholders received N21.4 billion, exceeding the N16.2 billion paid in taxes, placing Wema among the few banks where equity investors earned more than the state.
While Nigerian banks returned record profits in 2024 and shareholders saw strong dividend growth, it was the government that emerged the biggest financial winner, receiving a massive N1.166 trillion—over N200 billion more than total shareholder dividends. The figures underscore a significant shift in wealth distribution from capital investors to the public treasury, raising important questions about how value is shared in Nigeria’s evolving financial ecosystem.