Electronic payment transactions soared to N1.078

•Banks’ assets hit –N170.02trn

By Chinwendu Obienyi and Adanna Nnamani, Abuja

The State of Enterprise Report released yesterday by EnterpriseNGR, has shown that electronic payment transactions soared to  N1.078 quadrillion in 2024, which represents a 79 per cent growth of N600 trillion it was in 2023.

The report also disclosed that Point of Sales transactions (PoS) grew to N18.15 trillion from N10.7 trillion it was in the preceding year.

More so, Nigeria’s financial services sector contributed a record-breaking N570.91 billion in company income tax (CIT) in 2024.

The report highlights the growing fiscal importance of banks, insurance companies and other financial institutions in supporting government revenue amid ongoing economic reforms.

Corporate income tax collected from Nigeria’s financial sector, primarily banks, insurance firms, and other financial institutions reached N570.91 billion, signalling substantial growth in fiscal contributions from these industries.

The milestone is part of EnterpriseNGR’s State of Enterprise 2025 Report, which highlights a strong performance across the Financial & Professional Services (FPS) sector.

The report titled; Insights into Nigeria’s financial and Professional services sector which was launched by the Chief Executive Officer, EnterpriseNGR, Obi Ibekwe, reviews the performance of the Financial and Professional Services (FPS) sector and revealed that banks and insurance firms were the top contributors to the CIT pool, reflecting both increased profitability and improved tax compliance across the industry.

“Company Income Tax by banks, other financial institutions and insurance firms grew from N388.25 billion in 2023 to N570.91 billion in 2024, further underlining the sector’s resilience and commitment to national development.

In 2024, the Banking sub-sector maintained its role as a key driver of the non-oil economy. The collective financial institutions accounted for 5.8 per cent of Nigeria’s GDP, growing by a robust 30.9 per cent year-on-year, from N3.5 trillion in 2023 to N4.58 trillion.

Despite expectations of slower overall economic growth, the sector demonstrated strong resilience. This performance shows that financial institutions contributed approximately N6 of every N100 generated nationally, up from N5 in the previous year. The total assets of Deposit Money Banks (or Other Depository Corporations) rose by 39.6 per cent to N170.02 trillion as of December 2024”, the report said.

The report added that between 2015 and 2024, the value of assets recorded a compounded annual growth rate (CAGR) of 22.1 per cent.

“While this growth reflects deepening financial intermediation, it is important to note that part of the nominal expansion was influenced by currency depreciation against the US dollar during the period. Even so, the sector’s asset base now represents an estimated 63.1 per cent of nominal GDP, up from 52 per cent in 2023, indicating continued structural relevance in the economy”, it said.

The insurance industry also posted notable gains. According to the EnterpriseNGR report, the sector’s gross premium income reached N1.003 trillion in 2024, an 18.8 per cent year-on-year increase from N846 billion in 2023. This growth, attributed to increased public awareness, better penetration strategies, and regulatory support, translated into higher tax payments by insurance firms.

Ibekwe explained that the N570.91 billion CIT contribution comes as the Tinubu administration continues to implement structural reforms aimed at enhancing revenue generation and reducing dependence on oil earnings.

According to the report, measures such as the Finance Act amendments, improved tax collection systems, and digitalization of the tax base have been instrumental.

EnterpriseNGR noted that the growing tax revenue from financial institutions offers a glimpse into the evolving structure of Nigeria’s economy, one where non-oil sectors are becoming more prominent drivers of government income.

According to Ibekwe, “this performance reflects a maturing private sector that understands its role in national development. It is also a call for policymakers to double down on reforms that improve the ease of doing business and expand the formal economy”.

While the figures are encouraging, EnterpriseNGR cautioned that sustaining this trajectory would require deeper collaboration between the government and the private sector. Key concerns remain around regulatory uncertainty, exchange rate volatility, and access to credit.

Nonetheless, with over 11.8 million jobs supported by the FPS sector in 2024, up from 7.6 million in 2021, the sector is poised to play an even bigger role in Nigeria’s economic transformation in the years ahead.

“Looking ahead to 2025, key growth drivers for banks include loan book expansion amid moderating interest rates, gains from trading and fixed-income investments, and digital innovation to boost non-interest income. However, risks remain, particularly credit exposure to the oil and gas sector, which heightens vulnerability to foreign currency fluctuations. Impairment charges are expected to ease, reflecting a more stable macroeconomic outlook”, the report read.

EnterpriseNGR is a professional policy and advocacy group, established to promote and advocate for the development of the Financial and Professional Services (FPS) sector of Nigeria, and thereby advance the transformation of Nigeria into Africa’s premier financial services centre.