Banks, Insurance Companies, and other Financial Institutions have Significantly Contributed to Nigeria’s real Gross Domestic Product (GDP) in the first half of 2023 (H1’23), amounting to N1.72 trillion.
This Marks a remarkable 27 percent year-on-year (YoY) growth compared to the N1.35 trillion contributed during the same period in 2022 (H1’22).
An analysis of the Q2’23 GDP Report from the National Bureau of Statistics (NBS).
In Q2’23, these Financial Institutions Contributed N846.774 billion to the total National GDP of N17.72 trillion.
However, this does Indicate a 2.8 percent quarter-on-quarter (QoQ) decline from the N870.8 trillion contributed in Q1’23 to the National GDP of N17.75 trillion.
The NBS Elaborated on this Sector’s Performance: “The Finance and Insurance Sector consists of two Subsectors: Financial Institutions and Insurance. Financial Institutions accounted for 90.78% of the sector, while Insurance accounted for 9.22% in real terms in Q2 2023.
The Sector experienced overall Nominal growth of 28.00% YoY, with Financial Institutions growing at 30.41% and Insurance at 8.29%.
While this rate was 1.90% points lower than Q2 2022, it was 5.63% points higher than the Preceding quarter.”
“In real terms, the Sector’s growth rate reached 26.84%, reflecting an Increase of 8.37% Points from the Rate recorded in the second quarter of 2022 and 5.47% Points from the preceding quarter.
However, there was a quarter-on-quarter decline of -1.72%.
The contribution of Finance and Insurance to real GDP amounted to 5.26%, surpassing the 4.25% contribution Recorded in the second quarter of 2022 by 1.01% Points, yet falling slightly below the 5.35% recorded in Q1 2023 by 0.08% Points.”
