Nigeria’s financial sector has witnessed a significant surge in growth, exceeding 30% in the first half of 2024, according to the Federal Government.
At the 17th Annual Banking and Finance Conference in Abuja on Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by Dr. Armstrong Takang, Managing Director of Ministry of Finance Incorporated, highlighted that the growth reflects a robust recovery from the economic contractions experienced in 2021, further enhancing Nigeria’s economic strength.
“The financial sector continues to demonstrate resilience, rebounding strongly from the contractions observed in 2021. The sector has grown by over 30 per cent during the first half of this year, further bolstering our overall economic stability,” Edun stated.
He also emphasised the sector’s vital role in driving economic growth.
In his speech, Edun highlighted that the Nigerian economy had shown promising signs of progress despite challenges in some sectors.
He pointed out that Nigeria’s Gross Domestic Product had improved, with growth rising from 3 per cent in the first quarter to 3.2 per cent in the second quarter of 2024, with hopes of reaching a 3.7 per cent target by the end of the year.
“Our commitment to continue reforms aims to achieve a 3.7 per cent growth target by year-end,” he said.
The minister also acknowledged sector-specific developments, especially in oil and gas, which recorded 10 per cent growth during the second quarter of 2024.
“The oil and gas sector saw a notable increase of 10 per cent during the second quarter and a significant rebound from the contraction experienced in the same period last year,” he said.
While the non-oil sector maintained a steady growth rate of 2.8%, certain sectors, such as transportation, wholesale, retail trade, and manufacturing, experienced slower growth. To address these challenges, the government is implementing various measures, including increasing the supply of fuel, promoting biofuel use, and supporting CNG conversion kits.
He stated that the government was implementing various measures to support these industries, including plans to enhance the supply of Premium Motor Spirit by 25 million litres starting in September and procuring biofuel buses and CNG conversion kits.
Vice President Kashim Shettima, standing in for President Bola Tinubu, underscored the significance of collaboration between the government and the banking sector in fostering economic growth and development. He praised the Chartered Institute of Bankers of Nigeria for its unwavering dedication to enhancing Nigeria’s financial landscape.
“The Chartered Institute of Bankers of Nigeria has over the years demonstrated its unrelenting commitment to advancing the dynamic and evolving landscape of our economy,” Shettima said.
He added that the institute’s efforts play a crucial role in supporting the government’s efforts to rebuild the economy.
Shettima stressed that the Nigerian economy was on the path to recovery, with GDP growth recorded at 18.19 per cent in the second quarter of 2024.
He emphasised the importance of fostering financial inclusion, supporting investments, and ensuring sustainable development.
“Nigeria’s economic story is one of resilience, determination, and gradual recovery. Despite global challenges, including inflationary pressures and geopolitical tensions, our nation continues to push forward,” he said.
Edun stated the administration has made significant progress in revenue generation, with federal government revenue for the first half of 2024 reaching N9.1tn, which is more than double that of the same period in 2023.
“Aggregate federal government revenue for the first half of 2024 reached N9.1tn, more than double that of the same period in 2023. This substantial increase reflects the success of our revenue collection reforms and effective use of technology,” Edun said.
This article was written by Tamaraebiju Jide, a student at Elizade University
