Nigeria’s Finance and Insurance Sector Surges 16.13% in Q2 2025, Strengthening GDP Growth
Nigeria’s Finance and Insurance sector recorded a real growth of 16.13% in the second quarter of 2025, according to new data from the National Bureau of Statistics (NBS). This marks one of the most significant jumps in recent years and signals renewed momentum in the country’s financial ecosystem. Analysts say the sector’s strong performance is an encouraging sign for the broader economy, which has been seeking sustainable growth drivers beyond oil.
The NBS report shows that the sector’s growth rate in Q2 2025 was 15.83 percentage points higher than the same quarter of 2024 and 1.09 points above the previous quarter. The Finance and Insurance industry is made up of two major components: Financial Institutions and Insurance. Financial Institutions remained the dominant force, accounting for 87.97% of the sector’s real output, while Insurance contributed 12.03%, underscoring the ongoing strength of banking, fintech, and capital market activities in Nigeria.
Despite the robust year-on-year surge, the sector experienced a 7.13% decline in quarter-on-quarter real growth, pointing to a temporary slowdown in output. Economists suggest this dip may be due to seasonal factors, inflationary pressures, or short-term regulatory adjustments. Still, the Finance and Insurance sector contributed 3.23% to Nigeria’s real GDP in Q2 2025, up from 2.89% in the same quarter of 2024, though slightly lower than the 3.60% recorded in Q1 2025.
In nominal terms, the sector grew by an impressive 63.66% year-on-year, with Financial Institutions expanding by 65.24% and Insurance by 53.00%. This marks a sharp improvement compared to Q2 2024 and Q1 2025. The sector’s nominal contribution to GDP rose to 4.57%, up from 3.33% a year earlier and 3.07% in the previous quarter. Experts link this resilience to increased digital adoption, wider credit access, and rising insurance penetration across the country.
The strong performance of the Finance and Insurance sector reflects positively on Nigeria’s overall economic outlook. National GDP grew by 4.23% year-on-year in real terms in Q2 2025, outperforming the 3.48% recorded in the same period of 2024. Aggregate GDP at basic prices climbed to ₦100.73 trillion in nominal terms, compared to ₦84.48 trillion a year earlier. While quarterly fluctuations remain, the sector’s growth reinforces its role as a key driver of Nigeria’s diversification efforts and long-term economic stability.
source: nairametrics