Nigeria’s Financial Sector Thrives with 30% Growth in H1 2024: A New Economic Milestone
In an encouraging development for Nigeria’s economy, the Federal Government has reported that the financial sector experienced a remarkable growth of over 30% during the first half of 2024. This significant rebound underscores a strong recovery from previous economic challenges and highlights the sector’s vital role in stabilizing the nation’s economy.
At the 17th Annual Banking and Finance Conference held in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, delivered this positive news through Dr. Armstrong Takang, the Managing Director of Ministry of Finance Incorporated. Edun pointed out that the financial sector’s growth not only reflects its resilience but also contributes substantially to Nigeria’s overall 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. He further emphasized the crucial role the financial sector plays in driving economic growth and development.
Edun’s address also covered broader economic indicators. He noted that Nigeria’s Gross Domestic Product (GDP) had shown promising improvement, with growth rates rising from 3% in the first quarter to 3.2% in the second quarter of 2024. The government remains optimistic about reaching a 3.7% growth target by the end of the year.
Highlighting sector-specific achievements, Edun pointed out that the oil and gas sector had made a notable recovery with a 10% growth in the second quarter of 2024, reversing the contraction experienced in the same period last year. Conversely, the non-oil sector maintained a steady growth rate of 2.8%.
Despite these advances, Edun acknowledged ongoing challenges in various sectors such as transportation, wholesale, retail trade, and manufacturing, which have faced slower growth. To support these industries, the government is implementing measures including increasing the supply of Premium Motor Spirit by 25 million liters starting in September and investing in biofuel buses and CNG conversion kits.
Vice President Kashim Shettima, representing President Bola Tinubu, also spoke at the conference. He praised the Chartered Institute of Bankers of Nigeria for its continuous efforts to advance the financial sector and support the government’s economic recovery plans. Shettima highlighted the importance of collaboration between the government and the banking sector in fostering financial inclusion, encouraging investments, and ensuring sustainable development.
In addition, Edun reported substantial progress in revenue generation, with federal government revenue reaching N9.1 trillion in the first half of 2024—more than double the amount for the same period in 2023. This surge in revenue reflects the success of recent reforms and the effective use of technology in revenue collection.
Overall, Nigeria’s economic narrative remains one of resilience and gradual recovery. Despite global challenges such as inflation and geopolitical tensions, the country continues to make strides forward, demonstrating determination and a commitment to long-term economic stability and growth.
Source: punchng.com
