Financial Sector GDP Contribution Drops to N1.57tn in Q2 2026

In the second quarter of 2026, the contribution of Nigeria's financial institutions to the real Gross Domestic Product (GDP) declined by 10% quarter-on-quarter to N1.57 trillion, down from N1.75 trillion in Q1 2026, as reported by the National Bureau of Statistics (NBS). This decline occurred despite reforms by the Central Bank of Nigeria (CBN) intended to enhance the financial system and support the Federal Government's goal of achieving a $1 trillion economy by 2031.

The banking sector completed a recapitalisation exercise in March 2026, which aimed to enable banks to provide long-term financing for infrastructure and industrial projects. However, the CBN's monetary tightening to strengthen the naira and control inflation has pressured lending and transaction volumes.

The insurance sector performed better, contributing N230.64 billion to GDP, a 27.5% increase from Q1. Overall, the Finance and Insurance sector grew by 11.88% year-on-year, with financial institutions accounting for 87.22% of the sector's contribution.