Financial Sector Contributes N696bn To Economy

Banks and other financial institutions, excluding insurance, contributed N696.87billion to the nation’s real Gross Domestic Product (GDP) in first quarter of 2021 (Q1’21), up by 3.35per cent from N555.57billion in the corresponding period of 2021 (Q1’21).
The National Bureau of Statistics (NBS) report also shows that the contribution of banks, other financial institutions to the real GDP rose slightly by 53 basis points to 3.38per cent from 2.85per 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 4.54per cent, YoY in Q2’21 to N545.8billion from N571.7billion in Q2’2020, this trend was reversed with a 25.5per cent, YoY, growth in Q3’21, to N530.8billion from N422.9billion in Q3’2020.
The upward trend persisted in Q4’21 as the subsector recorded 25.19per cent growth to N686.4billion, up from N548.3billion in Q4’2020.
The contribution of banks, other financial institutions to the real GDP rose slightly by two basis points to 3.2per cent in 2021 from 3.0per cent in 2020.