Finance, Insurance sector growth drops to 9.29% in Q2 2026
Nigeria’s finance and insurance sector recorded a real growth rate of 9.29 per cent in the second quarter of 2026, down sharply from 16.13 per in the corresponding period of 2025, according to data released by the National Bureau of Statistics.
The slowdown comes after banks and insurance companies concluded major recapitalisation exercises that collectively raised more than N5.3 trillion in fresh capital within the last 12 months.
According to the NBS GDP report, the sector’s real growth declined by 6.84 percentage points year-on-year compared with Q2 2025. However, there was a slight improvement on a quarterly basis, with growth rising by 0.74 percentage points from the 8.55 per cent recorded in Q1 2026.
The finance and insurance sector comprises two subsectors; Financial Institutions and Insurance. In real terms, Financial Institutions continued to dominate sector activity, accounting for 87.22 per cent of total output in Q2 2026, while the Insurance subsector contributed 12.78 per cent.
The latest figures come after the completion of major recapitalisation programmes across the banking and insurance industries.
Under the Central Bank of Nigeria’s recapitalisation programme, banks raised a combined N4.61 trillion in fresh capital before the March 31, 2026 deadline. The CBN said the exercise boosted investor confidence, attracted increased foreign participation and supported the regional expansion plans of Nigerian banks.
Meanwhile, the insurance industry raised at least N720 billion as 43 operators met new capital requirements by the July 31, 2026 deadline. The exercise concluded the 12-month compliance window introduced following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Analysts expect the impact of recapitalisation to reflect more strongly in H2 2026 as banks deploy fresh capital into lending, and insurers expand product offerings.
