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

By Babajide Komolafe

Financial institutions, including banks and insurance firms, contributed an 8.5 % increase to real Gross Domestic Product (GDP), raising the sector’s output to N1.93 trillion in the first quarter of 2026 (Q1 ’26) from N1.78 trillion in Q1 ’25.

The National Bureau of Statistics (NBS) released these figures in its Q1 ’26 GDP report. The financial institutions sub‑sector remained the primary driver of activity, adding N1.75 trillion in Q1 2026 compared with N1.61 trillion in the corresponding period of 2025—a rise of about 8.4 %. This growth reflects continued expansion in banking operations, credit provision, and financial intermediation.

The insurance sub‑sector also grew steadily, reaching N180.95 billion in Q1 2026 from N164.58 billion in Q1 2025, an increase of roughly 9.9 %. The improvement signals progress in risk underwriting, premium generation, and broader market penetration.

In its report, the NBS noted: “The Finance and Insurance Sector consists of the two subsectors, Financial Institutions and Insurance, which accounted for 90.62 % and 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 Financial Institutions recording a growth rate of 46.71 % and Insurance 48.80 %. The overall rate was higher than Q1 2025 by 25.89 percentage points, and higher than the preceding quarter by 20.33 percentage points.”

“Quarter‑on‑quarter growth was 18.86 %. The sector’s contribution to nominal GDP was 3.83 % in Q1 2026, up from 3.07 % a year earlier and from 2.91 % in the preceding quarter.”

“Growth in this sector in real terms totaled 8.54 %, lower by 6.49 percentage points from the rate recorded in the 2025 first quarter and higher by 0.24 percentage 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 totaled 3.76 %, higher than the 3.60 % recorded in Q1 2025 by 0.16 percentage points, and higher than 2.56 % recorded in Q4 2025 by 1.20 percentage points.”

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