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A group actively involved in advocacy to develop Nigeria’s Financial and Professional Services (FPS) sector, EnterpriseNGR, has published the 2024 edition of its State of Enterprise (SOE) report, showing a strong growth in the FPS sector.
According to the Chief Executive Officer of EnterpriseNGR, Obi Ibekwe, it is the first of its kind to provide detailed insights on all the sub-sectors of the sector, comprising banking, insurance, capital markets, asset management, pensions, non-interest finance, Fintech, sustainable finance and professional services, legal services, accounting and management consulting.
The report which is available for free download on EnterpriseNGR’s website showed that the FPS sector has continued its upward trajectory in 2023, demonstrating resilience and robust growth.
“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 of transformation and we invite all industry stakeholders to join hands with us.
“The banking sub-sector made an improved contribution to national output in 2023. The collective financial institutions within the national accounts contributed 4.6 percent to GDP and grew by 28.8 percent YOY, from N2.72 trillion in 2022 to N3.5 trillion in 2023. The total assets of the banking sub-sector of the FPS surged by 56.14 per cent to N121.8 trillion, signaling its pivotal role in the economy.
“The SOE 2024 Report also highlights positive trends in the insurance sub-sector of the FPS. Gross premiums climbed by 18.77 percent to N1.003 trillion from N844.5 billion, reflecting increased insurance penetration. However, 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 the end of 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,” Ibekwe said.
The findings underscore the dynamic landscape of Nigeria’s financial sector and its potential to drive economic growth and development.
EnterpriseNGR brings together organisations in the FPS sector to champion Nigeria’s transformation into the leading financial services centre in Africa. The professional advocacy group advances this agenda by actively collaborating with all its stakeholders, including operators, policymakers, and regulators.
