New Telegraph

GDP: Banks lead financial institutions in N12.49trn contributions

Banks and other financial institutions, excluding insurance companies, contributed N12.49 trillion to Nigeria’s real Gross Domestic Product (GDP) between 2019 and 2023, according to data released by the National Bureau of Statistics (NBS). New Telegraph’s analysis of Nigerian GDP reports published by the NBS shows that banks and other financial institutions’ contribution to GDP maintained an upward trend in the last five years. Specifically, financial institutions’ contribution to GDP, which stood at N1.85 trillion in 2019, rose to N2.10 trillion in 2020; N2.32 trillion in 2021; N2.72 trillion in 2022 and N3.50 trillion in 2023.

This means that the sector’s total contribution to GDP in the five-year period amounted to N12.49 trillion. Further analysis of the reports, however, indicates a significant increase in financial institutions’ contribution to GDP in 2023 compared to what was recorded for previous years. For instance, the sector’s contribution to GDP in Q1’23 stood at N870.82 billion compared with N696.87 billion in the corresponding period of the preceding year.

Also, in Q2’23, the sector’s contribution to GDP amounted to N846.77 billion compared with N655.22 billion in Q2’22. Similarly, the sector’s contribution to GDP in Q3’23 was N771.06 billion compared with N594.68 billion in the corresponding period of the preceding year. Indeed, according to the Nigerian GDP Report Q4’23,” recently released by the NBS, banks and other financial institutions’, excluding insurance firms, contribution to the country’s real GDP, hit a record N1.01 trillion in the last quarter of last year, compared with N771.59 billion in the corresponding period of 2022.

The report stated: “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions, and Insurance, in which the former accounted for 94.02 per cent and the latter 5.98 per cent of the sector respectively in real terms in Q4’23. “As a whole, the sector grew at 32.29 per cent in nominal terms (year-onyear), with the growth rate of Financial Institutions at 33.98 per cent and 10.37 per cent growth rate recorded for Insurance. The overall rate was higher than Q4’22 by 9.71 per cent points, and higher by 2.09 per cent points than the preceding quarter. “The quarter-on-quarter growth was 28.62 per cent.

On an annual basis, the sector grew by 28.24 per cent, higher than 26.42 per cent in 2022. The sector’s contribution to the nominal GDP was 3.76 per cent in Q4’23, higher than the 3 per cent it represented a year previous, and higher than the contribution of 3.17 per cent it made in the preceding quarter.” It further said: “Growth in this sector in real terms totaled 29.78 per cent, higher by 18.16 per cent points from the rate recorded in the 2022 fourth quarter and higher by 1.56 per cent points from the rate recorded in the preceding quarter. Quarteron-quarter growth in real terms stood at 27.30 per cent. On an annual basis, the sector grew by 26.53 per cent, higher than 16.36 per cent in 2022.

Read Previous

Burnt IDP Hostel: Plateau agency demands thorough investigation

Read Next

…Labour’s protest not contempt, Falana tells AGF