Market News

By Babajide Komolafe

Banks, insurance, and other companies in the financial institutions sector contributed N1.77 trillion to the economy in the first quarter of the year, Q1 ’25, representing 15 per cent, year-on-year YoY, increase from N1.545 trillion in the corresponding period of last year, Q1’24.  

The National Bureau of Statistics, NBS disclosed this in its Nigeria Gross Domestic Product, GDP, Q1’25.

The report showed that banks and the other financial institutions contributed N1.613 trillion to the economy in Q1’25, up by 16.8 per cent, YoY, from N1.391 trillion contributed in Q1’24.

On the other hand, insurance companies contributed N164.58 billion in Q1’25, up by 7.1 per cent YoY     from N153.71 billion in Q1’24.  

The NBS in its GDP Q1’25 report said: “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions, and Insurance, in which the former accounted for 90.74% and the latter 9.26% of the sector respectively in real terms in Q1 2025. The sector grew at 21.01% in nominal terms (year-on-year), with the growth rate of Financial Institutions at 22.82% and 5.74% growth rate recorded for Insurance.  

“The overall rate was higher than Q1 2024 by 9.97% points, and lower by 6.43% points than the preceding quarter. The quarter-on quarter growth was 2.41%. The sector’s contribution to the nominal GDP was 3.07% in Q1 2025, higher than the 3.00% it represented a year previous, and higher than the contribution of 2.70% it made in the preceding quarter.

“Growth in this sector in real terms totaled 15.03%, higher by 13.57% points from the rate recorded in the 2024 first quarter and higher by 9.04% points from the rate recorded in the preceding quarter.” 

“Quarter-on-quarter growth in real terms stood at 17.50%. The contribution of Finance and Insurance to real GDP totalled 3.60%, higher than the contribution of 3.23% recorded in the first quarter of 2024 by 0.37% points, and higher than 2.46% recorded in Q4 2024 by 1.14% points.”