Nigeria’s Financial Sector Surges by 30% in First Half of 2024
Nigeria’s financial sector experienced remarkable growth, expanding by over 30% in the first half of 2024, according to the Federal Government. This notable surge signals a strong rebound from the contractions seen in 2021 and underscores the sector’s resilience, contributing to broader economic stability.
At the 17th Annual Banking and Finance Conference in Abuja on Tuesday, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, praised the sector’s performance. Represented by Dr Armstrong Takang, Managing Director of Ministry of Finance Incorporated, Edun stated: “The financial sector continues to demonstrate resilience, rebounding strongly from the contractions observed in 2021. The sector has grown by over 30 per cent during the first half of this year, further bolstering our overall economic stability.”
This growth has been integral in driving Nigeria’s economic progress, despite challenges faced in other sectors. Edunoutlined that the nation’s Gross Domestic Product (GDP) saw an uptick, rising from 3% in the first quarter to 3.2% in the second quarter of 2024. The government aims to achieve a 3.7% growth target by the end of the year.
“Our commitment to continuing reforms aims to achieve a 3.7 per cent growth target by year-end,” Edun emphasised, reflecting the administration’s ongoing efforts to ensure sustained economic improvement.
Beyond the financial sector, Edun highlighted the oil and gas industry’s contribution, which experienced a significant 10% growth in the second quarter, marking a sharp recovery from previous contractions. The non-oil sector maintained steady growth, posting a 2.8% increase. However, he acknowledged the challenges in transportation, wholesale, retail trade, and manufacturing sectors, which have been slower to recover.
The government, according to Edun, is actively addressing these difficulties. Among the initiatives are plans to enhance the supply of Premium Motor Spirit (PMS) by 25 million litres from September and the procurement of biofuel buses and Compressed Natural Gas (CNG) conversion kits to modernisethe transport sector. These measures are part of a broader strategy to stabilise and support underperforming industries.
Nigeria’s Vice President, Kashim Shettima, also attended the conference, representing President Bola Tinubu. In his address, Shettima commended the Chartered Institute of Bankers of Nigeria (CIBN) for its dedication to advancing the financial sector. He underscored the importance of government and banking sector collaboration, crucial to the nation’s economic recovery.
“The Chartered Institute of Bankers of Nigeria has over the years demonstrated its unrelenting commitment to advancing the dynamic and evolving landscape of our economy,” Shettimasaid, adding that the Institute’s contributions have been essential in bolstering the government’s efforts to rebuild the economy.
Despite persistent global challenges, including inflationary pressures and geopolitical tensions, Shettima emphasised that Nigeria’s economy is on a path of resilience and gradual recovery. He cited second-quarter GDP growth of 18.19%, reinforcing the government’s optimistic outlook.
Edun concluded his address by highlighting the Federal Government’s progress in revenue generation. He revealed that revenue for the first half of 2024 totalled ₦9.1 trillion, more than double the figure from the same period in 2023. This, he said, reflects the success of reforms aimed at improving revenue collection and the effective use of technology.
“Aggregate federal government revenue for the first half of 2024 reached N9.1tn, more than double that of the same period in 2023. This substantial increase reflects the success of our revenue collection reforms and effective use of technology,” Edun stated.
The government’s optimistic projections suggest that Nigeria’s financial and economic sectors are well-positioned for sustained growth, despite lingering challenges.
