Nigeria’s financial sector, comprising banks and insurance companies, recorded an 8.5 per cent increase in real Gross Domestic Product (GDP) in the first quarter of 2026, contributing N1.93 trillion compared to N1.78 trillion in the same period of 2025.
This was disclosed in the Q1 2026 GDP report published by the National Bureau of Statistics (NBS).
According to the report, the financial institutions segment remained the dominant contributor within the Finance and Insurance sector, generating N1.75 trillion in Q1 2026, up from N1.61 trillion recorded in Q1 2025. The 8.4 per cent rise was attributed to continued growth in banking services, credit financing, and other financial activities.
The insurance segment also posted strong growth, rising from N164.58 billion in Q1 2025 to N180.95 billion in Q1 2026. This reflects a 9.9 per cent increase driven by higher premium generation, improved underwriting performance, and wider market reach.
The NBS explained that the Finance and Insurance sector is made up of Financial Institutions and Insurance, with financial institutions accounting for 90.62 per cent of the sector in real terms, while insurance contributed 9.38 per cent during the quarter under review.
The report also showed that the sector expanded by 46.91 per cent in nominal terms year-on-year. Financial institutions recorded 46.71 per cent growth, while insurance grew by 48.80 per cent.
According to the bureau, the sector’s nominal growth rate exceeded the Q1 2025 level by 25.89 percentage points and was also 20.33 percentage points higher than the previous quarter.
On a quarter-on-quarter basis, the sector grew by 18.86 per cent nominally. Its contribution to nominal GDP rose to 3.83 per cent in Q1 2026 from 3.07 per cent in the corresponding period of 2025 and 2.91 per cent in the preceding quarter.
In real terms, the Finance and Insurance sector posted an 8.54 per cent growth rate, although this was 6.49 percentage points lower than the figure recorded in Q1 2025. However, it represented a slight increase of 0.24 percentage points compared to the previous quarter.
Quarter-on-quarter real growth stood at 17.77 per cent, while the sector’s contribution to real GDP increased to 3.76 per cent, higher than the 3.60 per cent recorded in Q1 2025 and 2.56 per cent in Q4 2025.
Despite the strong performance of banks and insurance firms, Nigeria’s overall GDP growth slowed to 3.8 per cent in Q1 2026, reflecting continued economic challenges across the broader economy.
