Finance, Insurance Firms Boost Services Sector Growth – CBN

The services sector recorded slight growth in the third quarter of 2021, buoyed by the improved performances of the finance and insurance sectors, according to the Central Bank of Nigeria.

The CBN, in its 2021 third-quarter economic report, said, “The services and agriculture sectors grew, in real terms, in the third quarter of 2021, while the industry sector dipped, owing to the contraction of some of its activity sectors.

“The services sector recorded an improved growth of 8.41 per cent (year-on-year), in contrast to a contraction of 5.49 per cent in the corresponding quarter of 2020. Finance and insurance, trade, and ICT subsectors drove the growth, which grew by 23.23 per cent, 11.90 per cent and 9.66 per cent, respectively. “

According to the report, the performance of the finance and insurance subsector was in response to the improvement in economic activities, which led to increases in the volume and value of credit disbursed to finance business and consumer expenditures.

It said the agriculture sector recorded a slower growth of 1.22 per cent in Q3 2021, compared with 1.39 per cent in the corresponding quarter of 2020.

The slower growth in the sector was attributed to the 3.97 per cent contraction in the fishing subsector caused by the seasonal rise in the water levels, it added.

The report said crop production, livestock, and forestry subsectors grew by 1.36 per cent, 0.12 per cent, and 1.98 per cent, respectively.

It said the performance of the industrial sector improved in the third quarter of 2021, recording a lower contraction of 1.63 per cent, compared to 6.12 per cent in the corresponding quarter of 2020.

It said the sector’s improvement was due largely to the performance of the manufacturing and mining and quarrying sub-sector.