Considering ongoing reforms, the financial services sector contribution to Nigeria’s Gross Domestic Product (GDP) closed 2025 at N6.58 trillion, about 15 per cent increase over N5.74 trillion reported in 2024.
This is according to the latest fourth quarter (Q4) 2025 GDP report by National Bureau of Statistics (NBS).
The recapitalisation exercise directive by the Central Bank of Nigeria (CBN) and the National Insurance Commission (NAICOM) dominated the sector in 2025.
Specifically, the objective of the CBN recapitalisation program is to strengthen the financial system, enabling banks to support long-term projects and economic growth. The exercise attracted foreign investors and inflows that has enhanced banks’ capital base.
The NBS in a report titled, “Nigerian Gross Domestic Product,” revealed that banks recorded a growth of N5.87 trillion in 2025, representing an increase of 14.36 per cent from N5.13 trillion reported in 2024.
For the insurance sector recorded N710.58 billion contribution in 2025, up by 16.04 per cent from N612.35 billion in 2024.
A breakdown revealed that both the banking and insurance sectors contribution to GDP in Q1 2025 was at N1.78 trillion, up by 15.03 per cent from N1.55trillion in Q1 2024, while in Q2 2025, it was at N1.65 trillion, about 16.13 per cent high from N1.42 trillion in Q2 2024.
In Q3 2025, the finance and insurance sectors to GDP stood at N1.51trillion, nearly 20 paper cent increase over N1.26trillion in Q3 2024. In addition, it was N1.64 trillion in Q4 2025, about 8.3 per cent growth over N1.51 trillion in Q4 2024.
According to the NBS report, the banking sector accounted for 90.43 per cent, while the insurance accounted for 9.57 per cent of the finance and insurance sector in real terms growth in Q4 2025.
The report stated, “The sector grew at 26.58 per cent in nominal terms (year-on-year), with the growth rate of banking sector at 26.15 per cent and 30.83 per cent growth for Insurance.
“The overall rate was lower than Q4 2024 by 0.86 percentage points, and lower by 13.97percentage points than the preceding quarter. The quarter-on-quarter growth was 13.00per cent. Overall, growth in 2025 stood at 38.51per cent, higher than the 22.82per cent recorded in 2024.
“The sector’s contribution to the nominal GDP was 2.91 per cent in Q4 2025, higher than the 2.70per cent it represented a year previous, and higher than the contribution of 2.78 per cent it made in the preceding quarter. In total, a contribution of 3.30 per cent was recorded in 2025 relative to 2.82 per cent in 2024.”
“Growth in this sector in real terms totaled 8.30 per cent, higher by 2.31percentage points from the rate recorded in the 2024 fourth quarter and lower by 11.33 percentage points from the rate recorded in the preceding quarter. Quarter-on-quarter, growth in real terms stood at 8.37 per cent. Overall, growth stood at 14.54 per cent, higher than the 2.95 per cent recorded in 2024.
“The contribution of Finance and Insurance to real GDP totalled 2.56 per cent, higher than the contribution of 2.46 per cent recorded in the fourth quarter of 2024 by 0.10 percentage points, and lower than 2.65 per cent recorded in Q3 2025 by 0.09 percentage points. In total, 2.97 per cent was contributed in 2025, higher than 2.69 per cent in 2024, ”the report said.
The NBS explained that Nigeria’s GDP grew by 4.07 per cent (year-on-year) in real terms in the Q4 2025. This growth rate is higher than the 3.76 per cent recorded in the Q4 2024.
The report explained further that in Q4 2025, the aggregate GDP at basic price stood at N122,810,658.96 million in nominal terms. This performance is higher when compared to the Q4 2024, which recorded an aggregate GDP of N104,478,934.86 million, indicating a year-on-year nominal growth of 17.55 per cent.
Experts have attributed the growth to major reforms in the financial sector, increasing number of daily transactions banks and impact of innovations from Fintech companies that have played a critical role in financial inclusion.
In a chat THISDAY, Investment Banker & Stockbroker, Tajudeen Olayinka stated that the growth in the financial services sector appears strong, but unusual owing to the CBN’s monetary policy tightening stance.
“In the financial services sector, the growth is not unusual. When you have monetary policy tightening, yields and interest rates go up, which means that the spread between deposits and lending widens and the banks make more profit.
“The contribution of 3.30per cent in 2025 relative to 2.82 per cent in 2024 2025 is still weak if we look at the average we have done in the last 5-6 years. It’s been under 2.5 per cent and there’s a situation where the population is growing above the GDP growth rate, so there won’t be much of that impact,” he added.
Also, the Vice President, Highcap Securitas Limited, Mr. David Adnori, attributed the increase in the finance and insurance sub-sector to GDP contribution to the CBN’s reforms.
He noted that innovations across the subsector have driven the volume of transactions in the banking and insurance sector, which is expected to boost the nation’s economy and drive liquidity.
