Banks’ assets increase to N1201.8 trillion

The banking sub-sector of Nigeria’s Financial & Professional Services (FPS) industry has experienced remarkable growth, with total assets increasing by 56.14% to N121.8 trillion.

This surge is highlighted in the State of Enterprise 2024 Report released on Monday by EnterpriseNGR, a member-led group promoting collective advocacy for the development of Nigeria’s financial and professional services sectors.

The report reveals that the banking sub-sector made a substantial contribution to national output in 2023, with a 28.8% year-on-year growth in collective financial institutions’ contribution to GDP, reaching N3.5 trillion.

These findings of the third edition of the SOE Report, which is available on EnterpriseNGR’s website, showed that the FPS sector continued its upward trajectory in 2023, demonstrating resilience and robust growth.

The banking sub-sector’s total assets, equivalent to half of Nigeria’s national GDP, underscore its crucial role in facilitating funds for businesses and the productive sector. Additionally, the sector’s tax revenue contribution ranked third among 23 economic sectors, showcasing its substantial impact on the government’s coffers.

The State of Enterprise 2024 Report also highlights positive trends in other segments of the Financial & Professional Services Sector, including the insurance sub-sector, as gross premiums written increased by 18.77% to N1.00tn, indicating increased insurance penetration.

Also, the capital markets sector experienced increased domestic participation, with the equity market’s All Share Index surpassing international market indices, reflecting a thriving equity market and growing investor confidence.

FinTechs and financial institutions also facilitated a significant rise in digital and electronic transactions conducted through digital and electronic channels.

These findings demonstrate the dynamic landscape of Nigeria’s financial sector and its potential to drive economic growth and development.

The SOE 2024 report was developed in collaboration with EnterpriseNGR member organizations and leveraged data from various institutions like the National Bureau of Statistics, the Central Bank of Nigeria, and the Securities and Exchange Commission.