Financial Sector Powers Economy with ₦1.77 Trillion Boost in Q1 2025!
Banks, Insurance, and Other Financial Institutions Deepen Impact – NBS Report
According to the latest Gross Domestic Product (GDP) report from the National Bureau of Statistics (NBS), Nigeria’s financial services sector delivered a powerful performance in the first quarter of 2025—injecting a massive ₦1.77 trillion into the nation’s economy!
This marks a 15% year-on-year (YoY) increase, compared to the ₦1.545 trillion contribution in Q1 2024.
Sector Breakdown:
Banks & Other Financial Institutions
Contributed ₦1.613 trillion in Q1’25 — up 16.8% YoY from ₦1.391 trillion in Q1’24.
Insurance Companies
Contributed ₦164.58 billion — a 7.1% YoY increase from ₦153.71 billion in the same period last year.
Real Sector Impact:
According to NBS:
• Financial Institutions made up 90.74% of the sector’s real output
• Insurance accounted for the remaining 9.26%
In nominal terms, the sector grew by 21.01% YoY, with:
• Financial Institutions recording a 22.82% growth rate
• Insurance posting a 5.74% growth rate
Compared to the previous quarter, the overall growth was:
• 9.97 percentage points higher than Q1 2024
• 6.43 percentage points lower than Q4 2024
• Quarter-on-quarter growth stood at 2.41%
Contribution to GDP:
• Nominal GDP Contribution (Q1 2025): 3.07%
(vs. 3.00% in Q1 2024 and 2.70% in Q4 2024)
• Real GDP Contribution: 3.60%
(vs. 3.23% in Q1 2024 and 2.46% in Q4 2024)
• Real Sector Growth Rate: 15.03%
(Up 13.57 percentage points from Q1 2024 and 9.04 points from Q4 2024)
Quarter-on-quarter real growth: 17.50%
What This Means:
This data signals strong momentum in Nigeria’s financial system, showing robust growth in both banking and insurance. It also reflects increasing activity in financial services, stronger consumer/business confidence, and a potentially growing appetite for credit, insurance, and digital finance solutions.
Banks, Insurance, and Other Financial Institutions Deepen Impact – NBS Report
According to the latest Gross Domestic Product (GDP) report from the National Bureau of Statistics (NBS), Nigeria’s financial services sector delivered a powerful performance in the first quarter of 2025—injecting a massive ₦1.77 trillion into the nation’s economy!
This marks a 15% year-on-year (YoY) increase, compared to the ₦1.545 trillion contribution in Q1 2024.
Sector Breakdown:
Banks & Other Financial Institutions
Contributed ₦1.613 trillion in Q1’25 — up 16.8% YoY from ₦1.391 trillion in Q1’24.
Insurance Companies
Contributed ₦164.58 billion — a 7.1% YoY increase from ₦153.71 billion in the same period last year.
Real Sector Impact:
According to NBS:
• Financial Institutions made up 90.74% of the sector’s real output
• Insurance accounted for the remaining 9.26%
In nominal terms, the sector grew by 21.01% YoY, with:
• Financial Institutions recording a 22.82% growth rate
• Insurance posting a 5.74% growth rate
Compared to the previous quarter, the overall growth was:
• 9.97 percentage points higher than Q1 2024
• 6.43 percentage points lower than Q4 2024
• Quarter-on-quarter growth stood at 2.41%
Contribution to GDP:
• Nominal GDP Contribution (Q1 2025): 3.07%
(vs. 3.00% in Q1 2024 and 2.70% in Q4 2024)
• Real GDP Contribution: 3.60%
(vs. 3.23% in Q1 2024 and 2.46% in Q4 2024)
• Real Sector Growth Rate: 15.03%
(Up 13.57 percentage points from Q1 2024 and 9.04 points from Q4 2024)
Quarter-on-quarter real growth: 17.50%
What This Means:
This data signals strong momentum in Nigeria’s financial system, showing robust growth in both banking and insurance. It also reflects increasing activity in financial services, stronger consumer/business confidence, and a potentially growing appetite for credit, insurance, and digital finance solutions.