Nigeria’s Finance and Insurance Sector Soars 16.13% in Q2 2025, Driving GDP Growth
Nigeria’s finance and insurance sector experienced a remarkable growth of 16.13% in real terms during the second quarter of 2025, according to the latest report from the National Bureau of Statistics (NBS). This represents a 15.83 percentage point increase compared to the same period in 2024 and a 1.09-point rise from the first quarter of 2025, reflecting the sector’s accelerating momentum within the Nigerian economy.
The report highlighted that financial institutions led this surge, accounting for 87.97% of the sector, while insurance contributed the remaining 12.03%. In nominal terms, the sector grew 63.66% year-on-year, with financial institutions posting 65.24% growth and insurance at 53%. Its contribution to nominal GDP rose to 4.57% in Q2 2025, up from 3.33% a year ago, showcasing the sector’s expanding role in Nigeria’s broader economic landscape.
Overall, Nigeria’s GDP grew 4.23% in Q2 2025, surpassing the 3.48% recorded in Q2 2024 and 3.13% in Q1 2025, largely fueled by reforms in the oil and gas sector and strong performance in services. The services sector alone grew 4.33%, contributing 57.5% to total GDP, while industry and agriculture recorded growth rates of 3.42% and 0.07%, respectively. Analysts note that the growth in finance reflects deeper digital banking penetration, expanded credit intermediation, and increased insurance activity.
Experts, however, caution that Nigeria’s economic structure presents challenges. Tilewa Adebajo, CEO of CFG Advisory, stressed that sustainable GDP growth of 8–10% is needed for meaningful improvements in the middle class. Similarly, economist Doyin Salami warned about “de-industrialisation,” noting that over 93% of the labour force remains in the informal sector, raising concerns about productivity, job security, and government revenue.
Looking ahead, AIICO Capital projects continued positive momentum for Q3 2025, supported by both oil and non-oil sectors alongside policy reforms. Yet, economists emphasize that sustained growth will require infrastructure development, strategic investment, and fiscal discipline to balance the dominance of the service sector and revitalize industrial output in Nigeria.
source: punch