Nigeria’s Finance and Insurance sector expanded by 63.66% in nominal terms year-on-year in the second quarter (Q2), according to data from the National Bureau of Statistics (NBS).
The Finance and Insurance sector is divided into Financial Institutions and Insurance with the former contributing 87.97% and the latter 12.03% in real terms during the period.
Subsector Performance
Financial Institutions led the growth momentum with a 65.24% nominal expansion, while the Insurance subsector posted a 53.00% increase year-on-year.
The combined growth rate of 63.66% was significantly higher than the 32.70% growth recorded in Q2 2024, representing an improvement of 30.96 percentage points.
It was also 42.65 percentage points higher than the preceding quarter, which stood at 21.01%. On a quarter-on-quarter basis, the sector grew by 59.54% in nominal terms.
Contribution to GDP
The Finance and Insurance sector contributed 4.57% to Nigeria’s nominal GDP in Q2 2025. This was higher than the 3.33% recorded in Q2 2024 and above the 3.07% reported in Q1 2025, showing the sector’s increasing role in the economy.
Real GDP Growth
In real terms, the sector grew by 16.13% year-on-year, an improvement of 15.83 percentage points compared to the 0.30% recorded in Q2 2024. The growth rate was also 1.09 percentage points higher than the 15.04% posted in Q1 2025.
However, on a quarter-on-quarter basis, the sector recorded a contraction of -7.13% in real terms, indicating slower momentum relative to the previous quarter.
Broader Implication
The strong nominal expansion and consistent real growth highlight the resilience of Nigeria’s financial services sector despite macroeconomic challenges.
The rising contribution to GDP underscores the sector’s growing importance in driving economic activity, supported by increased digital adoption, stronger capital inflows, and broader participation in insurance services.