In a concerning shift, the combined economic contribution from banks, insurance companies and other financial institutions dropped by 15 per cent, falling to ₦1.512 trillion in the third quarter of 2025, down from ₦1.778 trillion in the first quarter.
This marks the second consecutive quarter of decline for the sector. In Q2 2025, the contribution had already dipped to ₦1.651 trillion from Q1’s figure.
Despite the quarterly slide, over the first nine months of the year the sector still managed to deliver ₦4.94 trillion, a 16.8 per cent increase compared to the same period in 2024. The share of the Finance and Insurance sector in Nigeria’s total GDP also edged up: from 2.7 per cent in the first nine months of 2024 to 3.0 per cent in the same period of 2025.
That said, the quarter-on-quarter drop in Q3, which is an 8.4 per cent reduction from Q2, suggests the financial sector is facing headwinds.
Interestingly, this comes despite recent data showing a strong real-term growth in the broader Finance and Insurance sector in Q2 2025 (16.13 per cent), continuing an upward trend in nominal growth and GDP contribution.
The quarterly fall signals potential cooling of financial sector activity, which could slow credit flow and investment just as Nigeria’s economy, now more reliant on non-oil growth seeks stronger private-sector momentum. Continued slippage may hinder efforts to deepen financial inclusion and credit support for industry and business.
