The National Bureau of Statistics most recent data show that the insurance industry is back on a growth trajectory after increasing by 8.29% in the second quarter of 2023.
According to The Punch, data on economic performance show that the industry had previously seen a setback of 7.25 percent shrinkage in the first quarter of the year as a result of problems with the cash shortage crisis brought on by the Central Bank of Nigeria’s naira devaluation strategy.
According to the NBS’s second quarter GDP report, the financial institutions and insurance subsectors of the finance and insurance sector accounted for 90.78 percent and 9.22 percent, respectively, of the sector in real terms in Q2 2023.
“As a whole, the industry increased by 28% in nominal terms (year over year), with financial institutions growing at a pace of 30.41% and insurance growing at a rate of 8%.
“The overall rate was higher than the prior quarter by 5.63 percentage points and lower by 1.90 percentage points than Q2, 2022.”
The Punch also got a study that showed a 0.83 percent decline in quarterly growth.
The sector’s contribution to the nominal GDP was 4.01 percent in Q2 2023, up from 3.63 percent in the year prior but down from the 4.11 percent it contributed in the quarter before that.
According to the report, “Growth in this sector totaled 26.84% in real terms, up 8.37% points from the rate seen in the second quarter of 2022 and 5.47% points from the rate shown in the quarter before.
“The real growth from quarter to quarter was -1.72 percent. The total contribution of finance and insurance to real GDP was 5.26 percent, up 1.01 percentage points from the contribution of 4.25 percent in the second quarter of 2022 and down 0.08 percentage points from the 5.35 percent in the first quarter of 2023.
