EXAMINING THE ROLE OF INSURANCE IN FACILITATING ECONOMIC GROWTH IN NIGERIA

Abstract

The research examines how insurance-related activities affect Nigeria's economic growth, 
paying particular attention to premiums for life and non-life insurance, as well as insurance 
penetration. The data was collected from many sources, including the Nigeria Insurance 
Association Digest, the World Development Indicator database, and the Central Bank of 
Nigeria's statistics bulletin. The study used correlation analysis, descriptive statistics, and 
the Autoregressive Distributed Lag (ARDL) co-integration approach. The findings 
demonstrated that premiums from life insurance had a beneficial short- and long-term 
impact on the growth rate of the gross domestic product, with a significant long-term 
influence. Premiums from non-life insurance had a favorable effect on the growth rate only 
in the long run. The study concluded that insurance operations positively impact Nigeria's 
economic growth. It implies that to increase insurance activities, government agencies and 
organizations serving the insurance sector need to educate the general public on the value 
and significance of insurance services.