Nigeria’s Insurance Sector On Growth Trajectory, Records 15.68% Growth In Q1, 2022

Insurance Sector Grew by 15.68 Percent

Yemisi Izuora

The National Bureau of Statistics, NBS, has provided a figure showing a dramatic expansion of activities in the insurance industry, in the first quarter of 2022.

According the Bureau, the sector grew by 15.68 per cent in the first quarter of the 2022 financial period.

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

As a whole, the sector grew at 32.29 per cent in nominal terms (year-on-year), with the growth rate of financial institutions at 34.65 per cent and 15.68 per cent growth rate recorded for insurance.

The overall rate was higher than that of Q1, 2021 by 30.14 per cent points, and higher by 7.36 per cent points than the preceding quarter.” confirmed NBS.

According to the agency, quarter-on-quarter growth was 12.74 per cent, while the sector’s contribution to the overall nominal GDP was 3.80 per cent in Q1 2022, higher than the 3.25 per cent it represented in the previous year, and higher than the contribution of 3.10 per cent it made in the preceding quarter.

It noted that growth in this sector in real terms totalled 23.24 per cent, higher by 23.70 per cent points from the rate recorded in the 2021 first quarter and down by 0.90 per cent points from the rate recorded in the preceding quarter.

Quarter-on-quarter growth in real terms stood at 5.01 per cent.

The contribution of finance and insurance to real GDP totalled 4.51 per cent, higher than the contribution of 3.77 per cent recorded in the first quarter of 2021 by 0.74 per cent points, and higher than 3.66 per cent recorded in Q4 2021 by 0.84 per cent points.

Nigeria’s GDP grew by 3.11 per cent (year-on-year) in real terms in the first quarter of 2022, showing a sustained positive growth for the sixth consecutive quarter since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020, NBS revealed.

The first quarter of the 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4, 2020, is an indication of gradual economic stability.

The report showed that in Q1, 2022, the growth rate was higher than the 0.51 per cent growth rate recorded in Q1, 2021 by 2.60 per cent points and lower than 3.98 per cent recorded in Q4 2021 by 0.88 per cent points.

The NBS, said, “Nevertheless, quarter-on-quarter, real GDP grew at -14.66 per cent in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.

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

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