Nigeria’s financial services sector comprising banks, insurance companies, and other financial institutions contributed a total of ₦1.77 trillion to the economy in Q1 2025, according to the National Bureau of Statistics (NBS). This reflects a 15% increase from ₦1.545 trillion in Q1 2024, highlighting the sector’s resilience and growing influence on national GDP.
Banks and other financial institutions led the performance with ₦1.613 trillion, up 16.8% year-on-year, driven by strong interest income, credit expansion, and digital innovation. Insurance firms contributed ₦164.58 billion, a 7.1% rise, supported by increased policy uptake and reforms boosting industry penetration.
In real terms, the sector grew 15.03% year-on-year, with a quarter-on-quarter growth of 17.50%. It contributed 3.60% to real GDP, up from 3.23% in Q1 2024.The NBS noted that financial institutions accounted for 90.74% of the sector, while insurance represented 9.26%.
Analysts attribute the growth to policy reforms, renewed investor confidence, and financial inclusion efforts. With continued regulatory support and digital transformation, the sector is poised to sustain momentum, drive investment, and enhance national productivity in the quarters ahead.
