Title: Empirical Analysis of the Impact of Insurance on Nigeria's Economic Growth
Authors: Raymond, Nwandu, Ph.D.
Volume: 10
Issue: 2
Pages: 43-51
Publication Date: 2026/02/28
Abstract:
Insurance significantly drives Nigeria's economic growth by mobilizing funds for investment, stabilizing businesses through risk mitigation, and acting as a crucial financial intermediary, though its full potential is often limited by low penetration and regulatory gaps; recent reforms like the NIIRA 2025 aim to boost the sector's contribution to GDP by enhancing policyholder protection and efficiency, aligning with national development goals. This study examined the impact of insurance on Nigeria's economic growth spanning from 1986 to 2022. The study investigated the impact of insurance on economic growth in Nigeria with the use of ordinary least square method (OLS) to assess the short run impact on economic growth. In line with the research model used for the study, Gross Domestic Product (RGDP) was used as a proxy for economic growth which is dependent variable while Total Insurance Premium (TPR), Total Insurance Claim (TIC), Total Insurance Investment (INV) and Inflation Rate were used as the explanatory variables. In conclusion, it was discovered that insurance firms' indices have a positive impact on economic growth in the short run and negative impact in the long run and demonstrated a substantial relationship between total insurance premium and economic growth within the Nigerian context. From the research findings, we recommend that insurance policies be made mandatory for individuals and business organizations to encourage and protect investors as well as ensure sustained economic growth; the regulatory authorities should put in place policies to enforce transparent and efficient management of funds by insurers and lastly, Investors should diversify their portfolio of investments to boost returns and their ability in claims payment.