As the massive foreign exchange gains that banks enjoyed in the wake of the harmonisation of the FX market dry up, market watchers say lenders are actively seeking ways to open up other non-interest channels.

This was part of the outlook projected by experts at Meristem Securities in their monthly Banking Sector Highlights for November 2025.

The PUNCH reports that President Bola Tinubu, weeks into his administration in 2023, harmonised segments of the FX market, which led to a significant depreciation in the value of the naira and resulted in a boon for banks in terms of FX revaluation gains. The National Assembly thereafter imposed a windfall tax following the amendment of the Finance Act 2023. The PUNCH reported that six banks paid about N205.59bn as windfall tax in the 2024 financial year.

On the outlook for the banking sector, Meristem said, “As the 2025 FY period wraps up in December, we expect the pace of growth in banks’ gross earnings to moderate further as the sector fully transitions into a normalised earnings environment. Growth will, however, remain largely driven by interest income, as banks continue to leverage the still-high interest rate (MPR at 27.00%).