Financial institutions, including banks and insurance companies, recorded an 8.5 per cent growth in real Gross Domestic Product (GDP), contributing about N1.93 trillion in the first quarter of 2026, compared to N1.78 trillion recorded in the same period of 2025.
This was disclosed by the National Bureau of Statistics (NBS) in its latest GDP report for Q1 2026.
According to the report, the financial institutions sub-sector remained the major driver of economic activity within the sector, contributing N1.75 trillion in Q1 2026, up from N1.61 trillion recorded in Q1 2025. The growth represents an increase of approximately 8.4 per cent, reflecting continued expansion in banking operations, credit disbursement, and financial intermediation activities across the country.
The insurance sub-sector also posted steady growth during the review period. Its contribution rose to N180.95 billion in Q1 2026 from N164.58 billion in the corresponding quarter of 2025, representing an increase of about 9.9 per cent. The improvement highlights increased insurance penetration, stronger premium generation, and improved risk underwriting in the industry.
The NBS stated that the Finance and Insurance sector comprises two major sub-sectors — Financial Institutions and Insurance — with financial institutions accounting for 90.62 per cent of the sector in real terms, while insurance accounted for 9.38 per cent in Q1 2026.
The bureau further disclosed that the sector recorded a nominal year-on-year growth rate of 46.91 per cent during the quarter. Financial institutions grew by 46.71 per cent, while the insurance segment recorded a stronger growth rate of 48.80 per cent.
According to the report, the overall nominal growth rate was 25.89 percentage points higher than the figure recorded in Q1 2025 and also exceeded the preceding quarter’s performance by 20.33 percentage points.
Quarter-on-quarter, the sector expanded by 18.86 per cent in nominal terms. Its contribution to nominal GDP stood at 3.83 per cent in Q1 2026, higher than the 3.07 per cent contribution recorded a year earlier and above the 2.91 per cent recorded in the previous quarter.
In real terms, growth in the Finance and Insurance sector stood at 8.54 per cent, which was lower by 6.49 percentage points compared to Q1 2025, but slightly higher by 0.24 percentage points when compared to the preceding quarter.
On a quarter-on-quarter basis, real growth reached 17.77 per cent, while the sector’s contribution to real GDP rose to 3.76 per cent, surpassing the 3.60 per cent recorded in the first quarter of 2025 and the 2.56 per cent contribution posted in Q4 2025.
The report comes amid indications that Nigeria’s overall GDP growth slowed to 3.8 per cent in the first quarter of 2026, reflecting persistent economic challenges despite strong performances from the banking and insurance industries.
READ ALSO:
- PDP Leadership Crisis Worsens as Enugu Faction Selects Nwogbo as Governorship Candidate
- Tension in APC as Five Governors Allegedly Move to Sack National Chairman Yilwatda
- Armed Bandits Execute Two Zamfara Officials, Take Others Hostage
- NELFUND: Student Upkeep Payments Are Still Running
- Tinubu Defends Reforms, Says Nigeria Recovering In Third Anniversary Address
