Nigeria’s financial sector has rebounded strongly, recording a substantial growth of over 30% in the first half of 2024, according to a statement from the Federal Government. This significant increase highlights a robust recovery from previous economic contractions experienced in 2021.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, was represented by Dr. Armstrong Takang, the Managing Director of Ministry of Finance Incorporated, at the 17th Annual Banking and Finance Conference held in Abuja on Tuesday. Takang underscored the sector’s resilience and its pivotal role in enhancing Nigeria’s economic stability.
“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,” Edun stated through Takang.
In addition to the impressive growth in the financial sector, Edun highlighted broader economic progress. Nigeria’s Gross Domestic Product (GDP) increased from 3% in the first quarter to 3.2% in the second quarter of 2024. The government aims to achieve a 3.7% growth rate by the end of the year.
The oil and gas sector also showed notable improvement, recording a 10% growth in the second quarter, a significant rebound from the previous year. Meanwhile, the non-oil sector maintained a steady growth rate of 2.8%.
Despite these positive developments, Edun acknowledged challenges in sectors such as transportation, wholesale, retail trade, and manufacturing. The government is implementing measures to support these industries, including increasing the supply of Premium Motor Spirit and investing in biofuel buses and CNG conversion kits.
Vice President Kashim Shettima, representing President Bola Tinubu, also addressed the conference, emphasizing the importance of collaboration between the government and the banking sector. Shettima praised the Chartered Institute of Bankers of Nigeria for its dedication to advancing the financial sector and supporting economic recovery.
Shettima highlighted that Nigeria’s GDP growth reached 18.19% in the second quarter of 2024, despite facing global challenges such as inflation and geopolitical tensions. He stressed the importance of fostering financial inclusion, supporting investments, and ensuring sustainable development.
Furthermore, Edun noted a significant increase in federal government revenue, which reached N9.1 trillion in the first half of 2024, more than double the amount from the same period in 2023. This increase reflects the success of recent revenue collection reforms and the effective use of technology.
Overall, Nigeria’s economic outlook appears positive, with continued efforts to address challenges and promote growth across various sectors.
