Banks, insurance contribution to economy falls 15% to N1.51trn

By Babajide Komolafe, Economy Editor

Banks, insurance and other financial instiutions’ contribution to the economy fell by 15 per cent to N1.512 trillion in the third quarter, Q3’25 from N1.778 trillion in the first quarter of the year, Q1’25.   

This followed the second consecutive decline in the sector’s quarterly contribution to the nation’s Gross Domestic Product, GDP in the Q3’25. 

Vanguard analysis of the Gross Domestic Product, third quarter, Q3’ 2025 report released by the National Bureau of Statistics, NBS, showed that the sector recorded 7.1 per cent, QoQ declined  to N1.651 trillion in Q2’25 from N1.778 trillion in Q1’25.  This continued in the Q3’25 when the sector fell further by 8.4  per cent to N1.512 trillion. 

Meanwhile,  the sector contributed N4.94 trillion to the economy in nine months to September 2025,  representing 16.8 per cent, year-on-year YoY  growth from N4.23 trillion in the same period of 2024. 

Similarly, the  share of the Finance and Insurance sector in total GDP rose to 3.0 per cent in total GDP for the nine months, 9M’25 from 2.7 per cent in 9M’24. 

Further analysis showed steady YoY growth in the contribution of the sector in the three quarters. The sector recorded 15 per cent YoY growth in the first quarter, Q1’25 to N1.778 trillion from N1.546 trillion in the same period of 2024, Q1’24. In the second quarter, Q2’25, the sector grew by  16.1 per cent YoY to N1.651 trillion from N1.421 trillion in Q2’24. This trend continued in the third quarter, Q3’25 when the sector grew 19.6 per cent YoY growth to N1.512 trillion from N1.264 trillion in Q3’24.

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