Financial Sector Contributes N696bn To Economy

Banks and other financial institutions excluding insurance, contributed N696.87 billion to the nation’s real Gross Domestic Product, GDP, in first quarter of 2021 (Q1’21), up by 3.35 per cent from N555.57 billion in the corresponding period of 2021 (Q1’21).

Data from the National Bureau of Statistics, (NBS), indicates that the contribution of banks, other financial institutions to the real GDP rose slightly by 53 basis points to 3.38 per cent from 2.85 per cent in Q1’21.

Consequently, banks, financial institutions excluding insurance has recorded year-on-year, YoY, growth for three consecutive quarters.

Though the segment contracted by 4.54 per cent, YoY in Q2’21 to N545.8 billion from N571.7 billion in Q2’2020, this trend was reversed with a 25.5 per cent, YoY, growth in Q3’21, to N530.8 billion from N422.9 billion in Q3’2020.

The upward trend persisted in Q4’21 as the subsector recorded 25.19 per cent growth to N686.4 billion, up from N548.3 billion in Q4’2020.

The contribution of banks, other financial institutions to the real GDP rose slightly by two basis points to 3.2 per cent in 2021 from 3.0 per cent in 2020.