Financial sector, including banking and insurance, sees 8.5% increase in GDP, reaching N1.93 trillion

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By Babajide Komolafe

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Financial institutions including banks and insurance firms recorded a 8.5 per cent growth in real Gross Domestic Product, GDP to N1.9 trillion in the first quarter of 2026, Q1’26 from N1.78 trillion in Q1’25.

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The National Bureau of Statistics, NBS disclosed this in its GDP report for Q1’26. The report showed that the financial institutions sub-sector remained the dominant driver of activity, contributing N1.75 trillion in Q1 2026, up from N1.61 trillion in the corresponding period of 2025. This reflects an increase of about 8.4%, underscoring sustained expansion in banking operations, credit delivery, and financial intermediation.

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The insurance sub-sector also recorded steady growth, rising to N180.95 billion in Q1 2026 from N164.58 billion in Q1 2025, representing an increase of approximately 9.9%. The performance signals gradual improvement in risk underwriting, premium generation, and broader market penetration.

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The NBS in its report stated: “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions, and Insurance, in which the former accounted for 90.62% and the latter 9.38% of the sector, respectively in real terms in Q1 2026.

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“The sector grew at 46.91% in nominal terms (year-on-year), with the growth rate of Financial Institutions at 46.71% and 48.80% growth rate recorded for Insurance. The overall rate was higher than Q1 2025 by 25.89% points, and higher by 20.33% points than the preceding quarter.

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“The quarter-on quarter growth was 18.86%. The sector’s contribution to the nominal GDP was 3.83% in Q1 2026, higher than the 3.07% it represented a year previous, and higher than the contribution of 2.91% it made in the preceding quarter.

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“Growth in this sector in real terms totaled 8.54%, lower by 6.49% points from the rate recorded in the 2025 first quarter and higher by 0.24% points from the rate recorded in the preceding quarter.

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“Quarter-on-quarter, growth in real terms stood at 17.77%. The contribution of Finance and Insurance to real GDP totalled 3.76%, higher than the contribution of 3.60% recorded in the first quarter of 2025 by 0.16% points, and higher than 2.56% recorded in Q4 2025 by 1.20% points.”

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