Banks, insurers, others record 8.5% growth in GDP to N1.93trn

By Babajide Komolafe

Financial institutions including banks and insurance firms recorded a 8.5 per cent growth in real Gross Domestic Product, GDP to N1.9 trillion in the first quarter of 2026, Q1’26 from N1.78 trillion in Q1’25.

The National Bureau of Statistics, NBS disclosed this in its GDP report for Q1’26. The report showed that the   financial institutions sub-sector remained the dominant driver of activity, contributing N1.75 trillion in Q1 2026, up from N1.61 trillion in the corresponding period of 2025. This reflects an increase of about 8.4%, underscoring sustained expansion in banking operations, credit delivery, and financial intermediation.

The insurance sub-sector also recorded steady growth, rising to N180.95 billion in Q1 2026 from N164.58 billion in Q1 2025, representing an increase of approximately 9.9%. The performance signals gradual improvement in risk underwriting, premium generation, and broader market penetration.

The NBS in its report stated:   “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions, and Insurance, in which the former accounted for 90.62% and the latter 9.38% of the sector, respectively in real terms in Q1 2026.  

“The sector grew at 46.91% in nominal terms (year-on-year), with the growth rate of Financial Institutions at 46.71% and 48.80% growth rate recorded for Insurance. The overall rate was higher than Q1 2025 by 25.89% points, and higher by 20.33% points than the preceding quarter.  

“The quarter-on quarter growth was 18.86%. The sector’s contribution to the nominal GDP was 3.83% in Q1 2026, higher than the 3.07% it represented a year previous, and higher than the contribution of 2.91% it made in the preceding quarter.  

“Growth in this sector in real terms totaled 8.54%, lower by 6.49% points from the rate recorded in the 2025 first quarter and higher by 0.24% points from the rate recorded in the preceding quarter.  

“Quarter-on-quarter, growth in real terms stood at 17.77%. The contribution of Finance and Insurance to real GDP totalled 3.76%, higher than the contribution of 3.60% recorded in the first quarter of 2025 by 0.16% points, and higher than 2.56% recorded in Q4 2025 by 1.20% points.”

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