AGS NEWS – Nigeria’s Financial and Insurance sector experienced significant growth, rising from 10.1% in 2021 to 31.2% in the first quarter of 2024, as reported by Afrinvest in its latest report, “Bank Recapitalisation Catalyst for a $1 Trillion Economy,” launched in Abuja.

The report revealed that while the Financial and Insurance sector saw impressive growth, the agriculture sector lagged behind, declining from 2.1% in 2021 to 0.2% in Q1 2024.

The agriculture sector’s decline was attributed to its vulnerability to climate change and rural infrastructure challenges.

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The mining and quarry sector showed a recovery, growing by 6.3% in Q1 2024, after previous declines of 7.8% in 2021 and -18.2% in 2022.

The real estate sector experienced a mixed performance, increasing from 2.3% in 2021 to 3.9% in 2022, but then declining to 0.8% in Q1 2024.

The manufacturing sector gradually declined from 3.3% in 2021 to 1.5% in Q1 2024 due to reliance on imported raw materials and infrastructure challenges.

The trade sector also saw a decrease, from 8.6% in 2021 to 1.2% in Q1 2024, influenced by global economic trends and inflation.

The information and communication sector showed growth, increasing from 6.5% in 2021 to 9.8% in 2022, but then dropping to 5.4% in Q1 2024.

Afrinvest highlighted the resilience of Nigeria’s financial institutions, noting an 18.4% expansion between Q3 2023 and Q1 2024, making it the fastest-growing sector among the country’s seven largest GDP components.

Afrinvest attributed this performance to factors such as increased investment, growth in digital earnings, a favorable interest rate environment, and positive effects from naira devaluation.

The report predicted overall economic growth between 3.0% and 4.0% in the near term, with banking sector growth remaining strong as institutions meet new recapitalisation requirements.

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Rasheed Sarumi, Managing Director of Saro Africa International, emphasized the importance of agriculture in achieving a $1 trillion economy, noting the need for excess agricultural output to drive industrialization, productivity, and employment.

Despite improvements in productivity, Sarumi highlighted that government involvement in agriculture over the past 50 years had not yielded significant changes.