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Nigeria’s Financial Sector Achieves 30% Growth in H1 2024

The Federal Government of Nigeria has announced a significant 30% growth in the financial sector for the first half of 2024. This positive development was highlighted by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, through Dr. Armstrong Takang, Managing Director of Ministry of Finance Incorporated, at the 17th Annual Banking and Finance Conference held in Abuja on Tuesday. 

Edun praised the sector’s resilience, noting that it has rebounded strongly from the downturns of 2021. “The financial sector continues to demonstrate resilience, rebounding strongly from the contractions observed in 2021. The sector has grown by over 30% during the first half of this year, further bolstering our overall economic stability,” he stated. 

The Minister emphasized the critical role of the financial sector in driving Nigeria’s economic growth. He reported an improvement in the nation’s Gross Domestic Product (GDP), which rose from 3% in the first quarter to 3.2% in the second quarter of 2024. The government remains optimistic about achieving a 3.7% growth target by the year’s end. 

Sector-specific developments were also acknowledged. The oil and gas sector recorded a substantial 10% growth in the second quarter, marking a significant recovery from previous contractions. Meanwhile, the non-oil sector maintained a steady growth rate of 2.8%. 

Edun addressed the challenges faced by the economy, including slower growth in transportation, wholesale, retail trade, and manufacturing sectors. To support these industries, the government plans to enhance the supply of Premium Motor Spirit by 25 million litres starting in September and is investing in biofuel buses and CNG conversion kits. 

Vice President Kashim Shettima, representing President Bola Tinubu, underscored the importance of government and banking sector collaboration. He commended the Chartered Institute of Bankers of Nigeria for its efforts in advancing the country’s financial sector. Shettima highlighted that despite global challenges, Nigeria’s economic recovery is progressing, with a notable 18.19% GDP growth recorded in the second quarter of 2024. 

Edun further reported that federal government revenue for the first half of 2024 reached N9.1 trillion, more than double that of the same period in 2023. This increase underscores the success of recent revenue collection reforms and technological advancements. 

 

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