UBA, Zenith, GTB, Other Banks in Nigeria Grow Assets by 56% to Half Nigeria’s GDP

• The total assets of the banking sub-sector in the Nigerian financial sector have increased by 56.14% to N121.8 trillion.
• According to analysis, the banking subsector made a greater positive contribution to the country's overall economy in 2023
• The capital markets, asset management, banking, insurance, pensions, and other sectors are all included in the financial services industry

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian financial & Professional Services Sector(FPS)'s banking sub-sector now has N121.8 trillion in total assets, up 56.14%.

This was mentioned in the EnterpriseNGR's State of Enterprise 2024 Report, which was made public on Monday.

The analysis states that in 2023, the banking subsector contributed more positively to the overall national economy.

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According to the report, the total value of financial institutions included in the national accounts increased by 28.8% annually from N2.72 trillion in 2022 to N3.5 trillion in 2023, accounting for 4.6% of the GDP.

It added:

“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 FPS sector continued to grow and demonstrate resilience in 2023, according to the conclusions of the third edition of the SOE Report, which can be seen on the EnterpriseNGR website.

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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.”

Financial services encapsulate many

The financial products and services (FPS) industry includes capital markets, asset management, banking, insurance, pensions, non-interest financing, fintech, professional services (including accountancy, legal, and management consulting), and sustainable finance.

Positive improvements were also noted in the SOE 2024 report regarding the insurance sub-sector. Specifically, the gross premiums written increased by 18.77 percent to N1.00tn from N844.5bn, indicating a higher p*netration of insurance.

Additionally, the industry's gross claims ratio increased to 53.5%, a sign of larger awards.

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Furthermore, there was a notable surge in domestic participation in the capital markets, as evidenced by the equity market's impressive All Share Index of 74,773.77 at year-end 2023. This index exceeded several international market indices, including the FTSE100, S&P 500, and Hang Seng, indicating a robust equity market and increasing investor confidence.

More transactions were made possible by FinTechs and financial institutions using digital and electronic channels.

The use of electronic payments has increased dramatically, enabling customers to meet their regular financial service needs.

List of largest commercial banks by assets

Legit.ng earlier reported that the combined total asset value of Nigeria's tier-one largest banks increased to N116.80 trillion as of the end of the first quarter of 2024.

This figure represented a 23.81% or N22.46 trillion increase compared to N94.33 trillion as of December 2023.

Nigeria's Tier 1 banks: FBN Holdings (First Bank), Access Holdings (Access Bank), GTCO (GTBank), UBA, and Zenith Bank.

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Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng