By Aaior K. Comfort
Nigeria’s financial sector has experienced significant growth, expanding by over 30% in the first half of 2024, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. Represented by Dr. Armstrong Takang, Managing Director of Ministry of Finance Incorporated, Edun made the announcement during the 17th Annual Banking and Finance Conference held in Abuja on Tuesday.
Edun highlighted that this growth marks a strong recovery from the contractions observed in 2021, contributing to the broader economic stability of Nigeria. “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,” he said.
The minister also pointed out that Nigeria’s Gross Domestic Product (GDP) showed promising signs, improving from 3% in the first quarter to 3.2% in the second quarter of 2024, with aspirations to reach a 3.7% growth target by the end of the year. He emphasized the sector’s crucial role in driving economic growth and sustaining progress despite challenges in other areas.
Edun acknowledged the oil and gas sector’s notable performance, recording a 10% growth in the second quarter of 2024, which marked a significant rebound from the previous year’s contraction. Meanwhile, the non-oil sector maintained a steady growth rate of 2.8%.
However, the minister also addressed challenges in sectors like transportation, wholesale, retail trade, and manufacturing, which have seen slower growth. He outlined government measures to support these industries, including plans to enhance the supply of Premium Motor Spirit by 25 million liters in September and the procurement of biofuel buses and CNG conversion kits.
Vice President Kashim Shettima, who represented President Bola Tinubu at the event, also spoke, emphasizing the importance of collaboration between the government and the banking sector. He praised the Chartered Institute of Bankers of Nigeria for its commitment to advancing the nation’s financial landscape, noting that Nigeria’s economy is on a path to recovery with a recorded GDP growth of 18.19% in the second quarter of 2024.
Shettima underscored the need for fostering financial inclusion, supporting investments, and ensuring sustainable development in the face of global challenges such as inflationary pressures and geopolitical tensions.
Edun further noted the administration’s success in revenue generation, with federal government revenue for the first half of 2024 reaching N9.1 trillion, more than double the amount collected during the same period in 2023. He attributed this substantial increase to effective revenue collection reforms and the use of technology.
Looking ahead, Edun emphasized ongoing reforms aimed at enhancing macroeconomic stability, addressing inflation, and improving food security. He revealed that the government is implementing initiatives to curb food inflation and boost electricity supply through the grid, with a goal of increasing capacity from approximately 4.5 gigawatts to 6 gigawatts by the end of the year.