Banks, insurance firms, fintec and other financial entities made a substantial contribution of N1.72 trillion to the country’s actual Gross Domestic Product (GDP) during the first half of the current year, H1’23.
This marks a noteworthy 27 percent increase in year-on-year (YoY) growth when compared to the N1.35 trillion contributed in the corresponding period of the previous year, H1’22.
An analysis of the Q2’23 GDP report from the National Bureau of Statistics (NBS) revealed that financial establishments added N846.774 billion to the overall national GDP of N17.72 trillion in Q2’23.
Q2’23 sees 2.8% QoQ decline from N870.8 trillion GDP contribution in Q1’23
This depicts a 2.8 percent quarter-on-quarter (QoQ) decrease from the N870.8 trillion contribution to the national GDP of N17.75 trillion in Q1’23.
According to the NBS, the finance and Insurance Sector encompasses two subsectors: Financial Institutions and Insurance, with the former accounting for 90.78 percent and the latter for 9.22 percent of the sector in real terms during Q2’23.
The sector, taken as a whole, achieved nominal growth of 28.00 percent YoY, with Financial Institutions growing at 30.41 percent and Insurance at 8.29 percent.
This overall rate was slightly lower than Q2’22 by 1.90 percent and higher than the previous quarter by 5.63 percent.
The QoQ growth rate stood at -0.83 percent. The sector’s contribution to nominal GDP was 4.01 percent in Q2’23, up from 3.63 percent in the same period a year earlier, and down from 4.11 percent in the preceding quarter.
In terms of real terms, the sector comprised 26.84 percent, up by 8.37 percent from the rate in Q2’22 and 5.47 percent higher than the previous quarter.
The QoQ growth in real terms was -1.72 percent. The combined contribution of Finance and Insurance to real GDP was 5.26 percent, an increase of 1.01 percent points from Q2’22 and a decrease of 0.08 percent points from Q1’23.
