BANK'S ASSETS RISE TO N121.8TN — ENTERPRISENGR
Growth in Banking Sector Assets:
- The total assets in Nigeria’s banking sub-sector within the Financial & Professional Services (FPS) Sector increased significantly by 56.14%, reaching a value of ₦121.8 trillion. This growth is a clear indicator of the sector's resilience and its critical role in supporting the Nigerian economy.
Report Insights:
- This information comes from the "State of Enterprise 2024" report, published by EnterpriseNGR, a group dedicated to advancing Nigeria’s financial and professional services sectors. According to the report, the banking sub-sector contributed 4.6% to Nigeria's gross domestic product (GDP) in 2023, marking a year-on-year growth of 28.8% from ₦2.72 trillion in 2022 to ₦3.5 trillion in 2023.
Significance of Banking Sector:
- The report highlights the importance of the banking sub-sector, noting that the combined assets of deposit money banks represent half of Nigeria’s GDP. This underscores the sector's crucial role in providing financial support to businesses and the broader productive sector.
Tax Revenue Contributions:
- The banking sub-sector also plays a vital role in generating tax revenue, ranking third among 23 economic sectors in terms of income tax and VAT contributions to the government.
Broader Financial Sector Performance:
- The "State of Enterprise 2024" report shows that the overall FPS sector, which includes banking, insurance, capital markets, asset management, pensions, and fintech, continued to demonstrate robust growth and resilience in 2023.
Insurance and Capital Markets:
- The insurance sub-sector saw a rise in gross premiums written, which increased by 18.77% to ₦1.00 trillion from ₦844.5 billion. The gross claims ratio also increased to 53.5%, indicating a higher level of payouts.
- The capital markets experienced increased domestic participation, with the equity market’s All Share Index reaching 74,773.77 by the end of 2023. This performance outpaced several international market indices, reflecting a thriving equity market and growing investor confidence.
Digital and Electronic Transactions:
- The report also noted a significant increase in transactions conducted through digital and electronic channels, driven by fintechs and financial institutions. This growth in electronic payment transactions highlights the dynamic and evolving landscape of Nigeria’s financial sector.
Contributors to the Report:
- The report was developed with contributions from various EnterpriseNGR member organizations, including Chapel Hill Denham, Coronation Merchant Bank Ltd, and Meristem Securities Ltd, among others. It also utilized data from institutions like the National Bureau of Statistics, Central Bank of Nigeria, and the Securities and Exchange Commission.
This breakdown offers a comprehensive overview of the key findings and implications from the "State of Enterprise 2024" report regarding the banking sub-sector and the broader financial services sector in Nigeria.
Growth in Banking Sector Assets:
- The total assets in Nigeria’s banking sub-sector within the Financial & Professional Services (FPS) Sector increased significantly by 56.14%, reaching a value of ₦121.8 trillion. This growth is a clear indicator of the sector's resilience and its critical role in supporting the Nigerian economy.
Report Insights:
- This information comes from the "State of Enterprise 2024" report, published by EnterpriseNGR, a group dedicated to advancing Nigeria’s financial and professional services sectors. According to the report, the banking sub-sector contributed 4.6% to Nigeria's gross domestic product (GDP) in 2023, marking a year-on-year growth of 28.8% from ₦2.72 trillion in 2022 to ₦3.5 trillion in 2023.
Significance of Banking Sector:
- The report highlights the importance of the banking sub-sector, noting that the combined assets of deposit money banks represent half of Nigeria’s GDP. This underscores the sector's crucial role in providing financial support to businesses and the broader productive sector.
Tax Revenue Contributions:
- The banking sub-sector also plays a vital role in generating tax revenue, ranking third among 23 economic sectors in terms of income tax and VAT contributions to the government.
Broader Financial Sector Performance:
- The "State of Enterprise 2024" report shows that the overall FPS sector, which includes banking, insurance, capital markets, asset management, pensions, and fintech, continued to demonstrate robust growth and resilience in 2023.
Insurance and Capital Markets:
- The insurance sub-sector saw a rise in gross premiums written, which increased by 18.77% to ₦1.00 trillion from ₦844.5 billion. The gross claims ratio also increased to 53.5%, indicating a higher level of payouts.
- The capital markets experienced increased domestic participation, with the equity market’s All Share Index reaching 74,773.77 by the end of 2023. This performance outpaced several international market indices, reflecting a thriving equity market and growing investor confidence.
Digital and Electronic Transactions:
- The report also noted a significant increase in transactions conducted through digital and electronic channels, driven by fintechs and financial institutions. This growth in electronic payment transactions highlights the dynamic and evolving landscape of Nigeria’s financial sector.
Contributors to the Report:
- The report was developed with contributions from various EnterpriseNGR member organizations, including Chapel Hill Denham, Coronation Merchant Bank Ltd, and Meristem Securities Ltd, among others. It also utilized data from institutions like the National Bureau of Statistics, Central Bank of Nigeria, and the Securities and Exchange Commission.
This breakdown offers a comprehensive overview of the key findings and implications from the "State of Enterprise 2024" report regarding the banking sub-sector and the broader financial services sector in Nigeria.