The total assets of the banking sub-sector of Nigeria’s Financial and Professional Services Sector rose by 56.14 per cent to N121.8 trillion. This was disclosed in the State of Enterprise 2024 Report released by the EnterpriseNGR on Monday.....KINDLY READ THE FULL STORY HERE▶
EnterpriseNGR is a member-led group fostering collective advocacy to develop Nigeria’s financial and professional services sectors.
According to the report, the banking sub-sector made an improved contribution to national output in 2023.
It stated that the collective financial institutions within the national accounts contributed 4.6 per cent to the gross domestic product and grew by 28.8 per cent year-on-year, from N2.72 trillion in 2022 to N3.5 billion in 2023.
“The collective deposit money banks had total assets (of N121 trillion) that are equivalent to half of the national gross domestic product. But this is not just about numbers; it is about the significant supportive role of the banking sub-sector in facilitating necessary funds to support businesses and the productive sector,” the report partly states.
The 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.
Commenting on the report, Chief Executive Officer of EnterpriseNGR, Obi Ibekwe, said, “We are excited to unveil the SOE Report 2024. The report reflects EnterpriseNGR’s dedication to providing evidence to showcase the critical role of the FPS sector in Nigeria’s economy and to inspire collective action to advance the growth and development of the sector. This is in line with our vision for transformation and we invite all industry stakeholders to join hands with us.”
The FPS sector comprises banking, insurance, capital markets, asset management, pensions, non-interest finance, fintech, professional services (legal services, accounting and management consulting), and sustainable finance.
The SOE 2024 report also highlighted positive trends in the insurance sub-sector, as gross premiums written climbed by 18.77 per cent to N1.00 trillion from N844.5 billion, reflecting increased insurance penetration.
Also, the industry’s gross claims ratio rose to 53.5 per cent, indicating higher payouts.
Additionally, the capital markets experienced increased domestic participation, with the equity market registering a commendable All Share Index of 74,773.77 by year-end in 2023, which surpassed many international market indices, such as the FTSE100, S&P 500, and Hang Seng, reflecting a thriving equity market and growing investor confidence.
FinTechs and financial institutions facilitated an increased number of transactions conducted through digital and electronic channels.
Electronic payment transactions soared remarkably, helping consumers meet their everyday financial service needs.
