Nigerian financial institutions contributed approximately ₦6.40 out of every ₦100 generated nationally in Q1 2024, up from about ₦4.60 contributed in 2023

Key takeaways:

  • At 6.40%, financial institutions now contribute more than ever to Nigeria’s GDP.
  • From 3.60% in 2022 to 6.40% in Q1 2024, the sector’s share has nearly doubled in record time.
  • Between 2016 and 2019, the financial sector's contribution remained mostly flat at 2.60%–2.70%, showing little progress.
  • The financial sector started expanding post-2019, aligning with increased fintech adoption, digital banking growth, and financial inclusion policies.
  • The increasing role of financial institutions suggests more businesses and individuals are engaging with formal banking systems.
  • Despite economic uncertainties, Nigeria’s financial sector has successfully adapted and expanded, proving its ability to drive growth.

In Q1 2024, Nigeria's financial institutions accounted for 6.40% of GDP, nearly double their 2022 contribution of 3.60% and significantly up from 4.60% in 2023. This highlights the increasing role of financial institutions in driving economic growth and stability.
From 2016 to 2019, the sector’s share of GDP remained relatively stagnant, hovering around 2.60% to 2.70%. The turning point came in 2020, when the figure climbed to 3.00%, coinciding with major digital banking adoption, financial inclusion policies, and the rise of fintech startups. Since then, the sector has grown consistently, reflecting deeper financial penetration and economic formalisation.

Source:

EnterpriseNGR

Period:

2016 - Q1 2024
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