The annual contribution to GDP by the Finance and Insurance Sector, which consists of Financial Institutions and Insurance, stands at 3.36%, according to the Nigerian Gross Domestic Product report published by the National Bureau of Statistics (NBS).
According to the report, the contribution of Finance and Insurance to real GDP stood at 3.07% as at Q4 2020, lower than the contribution of 3.19% recorded in the fourth quarter of 2019 (Q4 2019) by 0.12% points, but higher than 2.67% recorded in Q3 2020 by 0.40% points.
The sector’s contribution to the overall nominal GDP was 2.80% in Q4 2020, lower than the 3.12% it recorded in Q4 2019, but higher than the contribution of 2.46% it made in Q3 2020. For 2020, the sector contributed 3.11% of aggregate nominal GDP.
The sector contracted by 1.10% in nominal terms (year on year), with the growth rate of Financial Institutions as 0.07% while –12.05% was recorded for Insurance.
The overall rate was lower than in Q4 2019 by 24.43% points and 7.01% points than Q3 2020. Quarter-on-quarter growth was 26.88% while annual growth of this sector was 11.98% in 2020.
Other Key highlights
- The Financial Institutions and Insurance accounted for 91.40% and 8.60% of the sector respectively, in real terms in Q4 2020.
- Growth in this sector, was -3.63% in real terms, lower than the rate recorded in Q4 2019 (20.18%), and the rate recorded in the preceding quarter (3.21%). Quarter-on-quarter, real growth stood at 26.07%. Annual growth of 9.37% was recorded in 2020, compared to 2.57% in 2019.