The recent *State of Enterprise 2024 Report* released by EnterpriseNGR highlights significant growth in Nigeria’s Financial and Professional Services (FPS) sector, particularly in the banking sub-sector. According to the report, the total assets of the banking sub-sector surged by 56.14% to reach ₦121.8 trillion. This growth reflects the sector’s increasing contribution to Nigeria’s economy, with financial institutions contributing 4.6% to the gross domestic product (GDP) in 2023, marking a year-on-year growth of 28.8%.
The banking sector’s assets now equate to nearly half of the nation’s GDP, underscoring its critical role in supporting businesses and the productive sector.
Furthermore, the sector ranked third in income tax and VAT generation among 23 economic sectors.
The report also noted positive trends in the insurance sub-sector, with gross premiums rising by 18.77% to ₦1 trillion, and increased domestic participation in the capital markets, as evidenced by a strong All Share Index of 74,773.77 by the end of 2023. The report emphasized the growing role of fintech and digital payments, which have significantly enhanced consumer access to financial services.
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The findings demonstrate the resilience and robust growth of Nigeria’s FPS sector, which continues to be a key driver of economic development.
