New Telegraph

Q1’24: Banks, Others’ Contributions To GDP Up 33.3% To N1.16trn

Banks and other financial institutions, excluding insurance companies, contributed N1.16 trillion to Nigeria’s real Gross Domestic Product (GDP) in the first quarter of this year, latest data released by the National Bureau of Statistics (NBS) shows.

New Telegraph’s analysis of “Nigerian GDP Report Q1’24,” released by the NBS last Friday, indicates that the amount is N289.96 billion or 33.30 per cent higher than the N870.82 billion that the financial institutions contributed to the country’s real GDP in the corresponding period of 2023.

Further analysis of data obtained from the NBS also shows that the N1.16 trillion contributed by financial institutions, excluding insurance firms, to the country’s real GDP in the first three months of this year, is the highest such contribution, quarterly, to date, by the financial institutions.

Indeed, a review of Nigerian GDP reports published by the NBS shows that banks and other financial institutions’ contribution to GDP maintained an upward trend between 2019 and 2023.

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. Giving details about the growth of the financial sector in its GDP report for Q1’24, the NBS stated: “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions, and Insurance, in which the former accounted for 93.19 per cent and the latter 6.81% of the sector respectively in real terms in Q1 2024.

“As a whole, the sector grew at 42.18 per cent in nominal terms (year-on-year), with the growth rate of Financial Institutions at 44.41 per cent and 17.37 per cent growth rate recorded for Insurance.

The overall rate was higher than Q1’23 by 19.81 per cent points, and higher by 9.89 per cent points than the preceding quarter.

The quarter-on-quarter growth was 20.97 per cent. “The sector’s contribution to the nominal GDP was 5.09 per cent in Q1’24, higher than the 4.11 percent it represented a year previous, and higher than the contribution of 3.76 percent it made in the preceding quarter.

Growth in this sector in real terms totaled 31.24 per cent, higher by 9.87 per cent points from the rate recorded in the 2023 first quarter and higher by 1.46 per cent points from the rate recorded in the preceding quarter. Quarter On-quarter growth in real terms stood at 15.48 per cent.

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