Nigeria’s Financial and Insurance Sector Boasts Robust 5.47 Percent Quarterly Surge

Nigeria’s financial and insurance sector appreciated by 5.47 percent in the third quarter, according to the latest report from the National Bureau of Statistics (NBS).

On a year-on-year basis, the sector grew by 8.37 percent over the figures recorded during the same period in 2022.

“Growth in this sector in real terms totaled 26.84 percent, higher by 8.37 percent points from the rate recorded in the 2022 second quarter and higher by 5.47 percent points from the rate recorded in the preceding quarter,” the report said.

According to NBS report, “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions and Insurance, in which the former accounted for 90. 78 percent and the latter 9.22 percent of the sector respectively in real terms in Q2 2023.

It has come to light that the combined expansion of both sectors soared to an impressive N2.08 trillion, this represents a significant upswing from the N1.63 trillion recorded during the corresponding second quarter of 2022.

The joint contributions of the finance and insurance sectors to the real GDP stood at a commendable 5.35 percent during the first quarter of 2023.

“The contribution of Finance and Insurance to real GDP totalled 5.26 percent, higher than the contribution of 4.25 percent recorded in the second quarter of 2022 by 1.01 percent points, and lower than 5.35 percent recorded in Q1 2023 by 0.08 percent points”.

“As a whole, the sector grew at 28 percent in nominal terms (year-on-year), with the growth rate of Financial Institutions at 30.41 percent and 8.29 percent growth rate recorded for Insurance.

“The overall rate was lower than Q2 2022 by 1.90 percent points, and higher by 5.63 percent points than the preceding quarter. The quarter-on-quarter growth was -0.83 per cent,” the report stated.