Nigeria Financial Sector GDP rises to N6.58 trillion in 2025, driven by banking, insurance reforms, and fintech innovations supporting economic growth

The financial services sector in Nigeria contributed N6.58 trillion to the nation’s Gross Domestic Product (GDP) in 2025, marking a 15 per cent increase from N5.74 trillion recorded in 2024, according to the latest fourth-quarter report by the National Bureau of Statistics (NBS).

Also read: Travels, Tours and Hospitality Industry can improve Nigeria’s Foreign Exchange and GDP- MD/CEO Climax Travels and Tours, Jamiu Abiodun Ojediran

The growth was largely attributed to reforms led by the Central Bank of Nigeria (CBN) and the National Insurance Commission (NAICOM), including recapitalisation directives aimed at strengthening banks’ ability to finance long-term projects and attract foreign investment.

The NBS report indicated that the banking sector accounted for N5.87 trillion of the total, up 14.36 per cent from N5.13 trillion in 2024, while the insurance sector contributed N710.58 billion, a 16.04 per cent increase from N612.35 billion in the previous year.

Quarterly breakdowns showed steady growth across all periods, with Q4 2025 recording N1.64 trillion, an 8.3 per cent rise over Q4 2024.

“In real terms, the financial and insurance sectors contributed 2.97 per cent to GDP in 2025, up from 2.69 per cent in 2024,” the report stated.

Banking represented 90.43 per cent of this contribution, while insurance accounted for 9.57 per cent. Overall, the sector grew 26.58 per cent in nominal terms, with insurance posting a 30.83 per cent increase.

Experts attribute the growth to structural reforms, increased daily banking transactions, and innovations driven by fintech companies enhancing financial inclusion.

Investment banker Tajudeen Olayinka noted that higher interest spreads due to monetary policy tightening helped boost profitability in the banking sector, though he cautioned that the sector’s GDP contribution remains modest relative to Nigeria’s growing population.

David Adnori, Vice President of Highcap Securitas Limited, added that sectoral innovations and regulatory reforms have increased transaction volumes, driving liquidity and supporting broader economic growth.

The NBS also reported that Nigeria’s overall GDP grew by 4.07 per cent year-on-year in real terms in Q4 2025, surpassing the 3.76 per cent recorded in Q4 2024, with nominal GDP reaching N122.81 trillion, reflecting a 17.55 per cent annual increase.

Also read: Sanwo-Olu Reassures Investors as Lagos Drives Inclusive Economic Growth

The performance underscores the role of the financial services sector as a stabilising and growth-driving force in Nigeria’s economy, amid ongoing reforms and the expanding influence of fintech innovations.