Business
Finance, Insurance sector surges16.13% in Q2 2025, says NBS
The combined Finance and Insurance sector of Nigeria has recorded a robust 16.13per cent growth year‑on‑year in the second quarter of 2025, according to the latest National Bureau of Statistics (NBS) Gross Domestic Product (GDP) report.
This growth outpaced many other sectors, reinforcing the role of financial services including banking, fintech, and insurance, in driving economic activity and supporting overall GDP growth.
The sector’s contribution to real GDP now stands at 3.60 per cent, up from 3.23 per cent in the previous comparable quarter.
Although the Finance and Insurance category groups banks and insurers together, NBS data indicates a breakdown.
It showed that financial institutions account for approximately 87.97 per cent of sector output, while insurance makes up the remaining 12.03per cent.
Despite the impressive headline growth, economic analysts urge a cautious optimism, stressing that much of the expansion is being driven by banking activity and financial institutions, and not necessarily insurance.
The CEO of CFG Advisory, Mr. Tilewa Adebajo described the performance as a step in the right direction.
He added that Nigeria’s financial sector is responding well to reforms, but to create mass impact, the economy needs sustained eight to 10.
Adebajo stressed growth annually to uplift the middle class.
On the insurance side, observers note that the recent spike may reflect increased demand for financial services, but they highlight the need for deeper penetration, better products, and stronger regulatory follow‑through for granting the insurance subsector a more visible share of the gains.
The strong performance in the broader finance sector provides a favourable macroeconomic backdrop for insurers.
Growing financial sector activity often leads to higher demand for risk‑management products, insurance penetration, and investment, all of which could benefit insurers.
However, the growth momentum could strengthen calls for reforms like Capital injections, improved underwriting practices, digital transformation and stimulate investor interest in the insurance space.
Overall, while the NBS numbers send an encouraging signal about Nigeria’s financial ecosystem, insiders caution that the insurance industry must capitalize on this momentum through strategic innovation, deeper market penetration, and improved transparency to turn macroeconomic gains into sector‑specific growth.
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