By 
Nigeria’s financial and professional services (FPS) sector contributed N1.92 trillion in Company Income Tax (CIT) and Value Added Tax (VAT) in 2025, reinforcing its position as one of the country’s most significant drivers of government revenue, investment, and economic growth.
The figures were revealed in the State of Enterprise (SOE) Report 2026, launched by EnterpriseNGR during its Members’ Night in Lagos.
According to the report, the sector generated N1.5 trillion in Company Income Tax, accounting for approximately 30 percent of total CIT collections in 2025. Financial and insurance activities also contributed N421 billion in Value Added Tax, bringing the combined tax contribution to N1.92 trillion for the year.
Financial Services Driving Economic Growth
Beyond its contribution to government revenue, the report identifies the financial and professional services sector as a major catalyst for economic reforms, capital mobilisation, and enterprise development.
The assessment covers key segments of the industry, including banking, insurance, capital markets, pensions, asset management, non-interest finance, fintech, professional services, and sustainable finance.
Despite persistent inflationary pressures, tight monetary policy, exchange rate adjustments, and ongoing structural reforms, the sector continued to demonstrate resilience throughout the reporting period.
Banking and Capital Markets Record Strong Performance
The report shows that total assets held by Nigeria’s deposit money banks increased to N180.37 trillion, representing approximately 41.8 percent of the country’s nominal Gross Domestic Product (GDP).
Nigeria’s capital market also delivered one of its strongest performances in recent years.
The Nigerian Exchange (NGX) All-Share Index gained 51.19 percent in 2025 and continued its upward trajectory during the first quarter of 2026.
Market capitalisation rose by 58.3 percent to N99.38 trillion in 2025 before increasing further to N129.21 trillion in the first quarter of 2026.
During the same period, total market transactions more than doubled to N11.92 trillion, with domestic investors accounting for a significant share of market activity.
Insurance, Pensions and Fintech Expand
Other segments of the financial services industry also posted notable growth.
Gross premiums written by insurance companies increased by 47.3 percent to N2.30 trillion, while total insurance assets expanded by 24.2 percent to N4.79 trillion.
Pension assets grew by 21.9 percent to N27.45 trillion in 2025 and reached N29.52 trillion during the first quarter of 2026.
The report also reaffirmed Nigeria’s position as Africa’s leading fintech market, noting that the country now hosts more than 500 fintech companies with a combined valuation exceeding $10.6 billion.
Electronic payment activity also continued to accelerate, with transactions reaching N384 trillion across 4.12 billionpayment transactions by July 2025.
Evidence-Based Insights for Policymakers and Investors
Speaking at the report’s launch, EnterpriseNGR Chief Executive Officer, Obi Ibekwe, said the publication was developed to provide business leaders, investors, and policymakers with reliable data to support strategic decision-making in an increasingly dynamic economic environment.
According to her, the report goes beyond measuring sector performance by identifying areas where investor confidence is strengthening, capital is flowing, reforms are delivering measurable outcomes, and where additional policy interventions are needed.
She noted that performance across banking, insurance, pensions, capital markets, fintech, and professional services confirms the sector’s central role in supporting enterprise development, attracting investment, and improving Nigeria’s economic competitiveness.
However, she emphasised that sustaining this momentum will require stronger financial inclusion, improved regulation, enhanced institutional capacity, and continued innovation across the industry.
Structural Challenges Remain
Despite the sector’s strong performance, the report identified several structural challenges that continue to constrain long-term growth.
These include low levels of financial inclusion, weak insurance penetration, limited liquidity in the capital market, inadequate pension coverage within the informal sector, skills and data gaps, and the need for stronger governance and greater innovation throughout the financial and professional services ecosystem.
EnterpriseNGR noted that the State of Enterprise Report is intended to serve as a comprehensive reference for policymakers, regulators, investors, corporate executives, researchers, and development partners by combining official statistics, market intelligence, and industry analysis to provide informed insights into the outlook for Nigeria’s financial services sector.
Comments