‘Banks’ Assets Rise To N121.8trn’
The total assets of the banking sub-sector of Nigeria’s Financial & Professional Services Sector, has risen by 56.14 per cent to N121.8tn.
This was disclosed in the State of Enterprise 2024 Report released by the EnterpriseNGR on Monday.
EnterpriseNGR is a member-led group fostering collective advocacy to develop Nigeria’s financial and professional services sectors.
According to the report, the banking sub-sector made an improved contribution to national output in 2023.
It stated that the collective financial institutions within the national accounts contributed 4.6 per cent to the gross domestic product and grew by 28.8 per cent year-on-year, from N2.72tn in 2022 to N3.5tn in 2023.
“The collective deposit money banks had total assets (of N121tn) that are equivalent to half of the national gross domestic product. But this is not just about numbers; it is about the significant supportive role of the banking sub-sector in facilitating necessary funds to support businesses and the productive sector.
“The sub-sector’s role in tax revenue was equally commendable, ranking third out of the 23 economic sectors, in income tax and VAT generation to the government coffer,” part of the report said.
The findings of the third edition of the SOE Report, which is available on EnterpriseNGR’s website, showed that the FPS sector continued its upward trajectory in 2023, demonstrating resilience and robust growth.
In her foreword, the Chief Executive Officer of EnterpriseNGR, Obi Ibekwe, wrote, “We are excited to unveil the SOE Report 2024. The report reflects EnterpriseNGR’s dedication to providing evidence to showcase the critical role of the FPS sector in Nigeria’s economy and to inspire collective action to advance the growth and development of the sector. This is in line with our vision for transformation and we invite all industry stakeholders to join hands with us.”
The FPS sector comprises banking, insurance, capital markets, asset management, pensions, non-interest finance, fintech, professional services (legal services, accounting and management consulting), and sustainable finance.
The SOE 2024 report also highlighted positive trends in the insurance sub-sector, as gross premiums written climbed by 18.77 per cent to N1.00tn from N844.5bn, reflecting increased insurance penetration.
Also, the industry’s gross claims ratio rose to 53.5 per cent, indicating higher payouts.
Additionally, the capital markets experienced increased domestic participation, with the equity market registering a commendable All Share Index of 74,773.77 by year-end in 2023, which surpassed many international market indices, such as the FTSE100, S&P 500, and Hang Seng, reflecting a thriving equity market and growing investor confidence.
FinTechs and financial institutions facilitated an increased number of transactions conducted through digital and electronic channels.
Electronic payment transactions soared remarkably, helping consumers meet their everyday financial service needs.
These findings underscore the dynamic landscape of Nigeria’s financial sector and its potential to drive economic growth and development.
The SOE 2024 report was developed with strong contributions from some of EnterpriseNGR’s member organisations, including Chapel Hill Denham, Coronation Merchant Bank Ltd, Custodian Investment Plc, Investment One Financial Services Ltd, Lotus Bank Ltd, Meristem Securities Ltd, Templars Law, Udo Udoma & Belo Osagie, and Wigwe & Partners.
It also leveraged data provided by different institutions, such as the National Bureau of Statistics, the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Exchange Group, the FMDQ Group, the National Insurance Commission, and the National Pension Commission.
