Financial services sub-sector recovers from year-long recession —NBS

The Nigeria financial services sub-sector has shown signs of recovery in the third quarter of 2019, from its year-long recession, growing at 1.1per cent as against -2.2 per cent recorded in the Q2.

The Q3:2019 Gross Domestic Product (GDP) report published by the National Bureau of Statistics (NBS) which revealed this, also showed sustained expansion in the Information and Communication Technology (ICT) sector lifted economic growth to 2.3 per cent.

The Central Bank of Nigeria (CBN) recently published the list of licensed finance companies, Microfinance Bank (MFBs), Bureaux De Change (BDC) and Deposit Money Banks (DMBs) and Finance Holding Companies operating in Nigeria as of September 30, 2019.

According to the report, currently, there are against 77 Licensed Finance Companies; 911 CBN Licensed Microfinance Banks; 33 Deposit Money Banks and Finance Holding Companies; and 5,097 Bureaux De Change in Nigeria as of September, 30, 2019 as against 63 Licensed Finance Companies; 882 CBN Licensed Microfinance Banks; 35 Primary Mortgage Banks; and 4,345 Bureaux De Change in Nigeria as of September 30, 2018.

Meanwhile, NBS report further showed that

the contraction in the real estate sub-sector improved at -2.3per cent (vs -3.8% Q2:2019).

The trade sub-sector remained underwater for the second consecutive quarter, further dipping to -1.5 per cent (vs -0.3 per cent Q2:2019) partly reflecting pressures in the wake of Nigeria’s closure of its land borders in the quarter.

The NBS also noted that there was growth in the agriculture sector, which expanded to 2.3per cent Y-o-Y in Q3:2019 (vs 1.8 per cent Q2:2019), although still slower than 3.2 per cent growth recorded in Q1:2019.