Insurance Sector Grew by 15.68 Percent

Based on figures obtained from the National Bureau of Statistics, NBS, on the country’s Gross Domestic Product, the Nigerian insurance sector grew by 15.68% in the first quarter of the 2022 fiscal period.

“The finance and insurance sector consists of two subsectors, financial institutions and insurance, which accounted for 89.12% and 10.88% of the sector in real terms in Q1, 2022, respectively.”

“As a whole, the sector grew by 32.29 percent in nominal terms (year on year), with financial institutions growing by 34.65 percent and insurance growing by 15.68 percent.”

“The overall rate was 30.14 percentage points higher than in Q1 2021, and 7.36 percentage points higher than the previous quarter.”

Quarter-on-quarter growth was 12.74 percent, according to the report.

In Q1 2022, the sector contributed 3.80 percent of total nominal GDP, up from 3.25 percent the previous year and 3.10 percent the previous quarter.

Growth in this sector was 23.24 percent in real terms, up from 23.70 percent in the first quarter of 2021 and down from 0.90 percent in the previous quarter.

According to the report, Nigeria’s GDP increased by 3.11 percent year on year in the first quarter of 2022, marking the sixth consecutive quarter of sustained positive growth since the recession of 2020, when negative growth rates were recorded in quarters two and three.

The first quarter of 2022 growth rate represents yet another improvement in economic performance. The observed trend since Q4 2020 indicates a gradual return to economic stability.

“However, real GDP grew at -14.66 percent in Q1 2022 compared to Q4 2021, reflecting lower economic activity than the previous quarter.”

“In nominal terms, aggregate GDP stood at N45,317,823.33 million in the quarter under review.”