EnterpriseNGR, a member-led group fostering collective advocacy to develop Nigeria’s Financial & Professional Services (FPS) sector has published the 2024 edition of its State of Enterprise (SOE) Report.
The SOE Report indicates strong growth in the FPS sector and is the first of its kind to provide detailed insights on all the sub-sectors of the sector, comprising banking, Insurance, Capital Markets, Asset Management, Pensions, Non-interest Finance, FinTech, Professional Services (Legal Services, Accounting and Management Consulting), and Sustainable Finance.
According to the findings of the third edition of the SOE Report which is available for free download on EnterpriseNGR’s website, the FPS sector continued its upward trajectory in 2023, demonstrating resilience and robust growth.
In her foreword, the Chief Executive Officer of EnterpriseNGR, Obi Ibekwe wrote: “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 Banking sub-sector made an improved contribution to national output in 2023. The collective financial institutions within the national accounts contributed 4.6% to GDP and grew by 28.8% YOY, from ₦2.72 trillion in 2022 to ₦3.5 trillion in 2023. The total assets of the banking sub-sector of the FPS surged by 56.14% to N121.8 trillion, signalling its pivotal role in the economy.
The SOE 2024 Report also highlights positive trends in the insurance sub-sector of the FPS. Gross premiums written climbed by 18.77% to N1.003 trillion from N844.5 billion, reflecting increased insurance penetration. However, the industry’s gross claims ratio rose to 53.5%, 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. These findings underscore the dynamic landscape of Nigeria’s financial sector and its potential to drive economic growth and development.
The SOE 2024 Report was developed with strong contributions from some of EnterpriseNGR’s member organisations, including Chapel Hill Denham, Coronation Merchant Bank Ltd, Custodian Investment Plc, Investment One Financial Services Ltd, Lotus Bank Ltd, Meristem Securities Ltd, Templars Law, Udo Udoma & Belo Osagie, and Wigwe & Partners. It also leveraged data provided by different institutions such as the National Bureau of Statistics, Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Exchange Group, FMDQ Group, National Insurance Commission, and National Pension Commission.
EnterpriseNGR brings together organisations in the FPS sector to champion Nigeria’s transformation into the leading financial services centre in Africa. The professional advocacy group advances this Agenda by actively collaborating with all its stakeholders including, operators, policymakers, and regulators.
