Insurance Sector Records 28% Growth In Q3, 2022

Insurance sector recorded 28.26 per cent growth in the third quarter of 2022, according to figures obtained from the National Bureau of Statistics.

The NBS stated in its ‘Nigerian Gross Domestic Product report Q3, 2022’, that the finance and insurance sector consisted of the two subsectors.

It added that the financial institutions and insurance accounted for 89.99 per cent and 10.01 per cent of the sector respectively in real terms in Q3, 2022.

The report said, “As a whole, the sector grew at 21.37 per cent in nominal terms (year-on-year), with the growth rate of financial institutions at 20.65 per cent and a 28.26 per cent growth rate recorded for insurance.

“The overall rate was lower than Q3, 2021 by 5.09 per cent points, and lower by 8.53 per cent points than the preceding quarter. The quarter-on-quarter growth was -9.40 per cent. The sector’s contribution to the overall nominal GDP was 2.83 per cent in q3, 2022, higher than the 2.7 per cent it represented a year previous, and lower than the contribution of 3.63 per cent it made in the preceding quarter.

“Growth in this sector in real terms totalled 12.7 per cent, lower by 10.53 per cent points from the rate recorded in the 2021 third quarter and down by 5.78 per cent points from the rate recorded in the preceding quarter.

“Quarter-on-quarter growth in real terms stood at -10.14 per cent. The contribution of finance and insurance to real GDP totalled 3.49 per cent, higher than the contribution of 3.16 per cent recorded in the third quarter of 2021 by 0.32 per cent points, and lower than 4.25 per cent recorded in Q2, 2022 by 0.77 per cent points.”

According to the NBS report, Nigeria’s GDP grew by 2.25 per cent (year-on-year) in real terms in the third quarter of 2022. The growth rate declined from 4.03 per cent in the third quarter of 2021.

It stated, “The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities. The Q3, 2022 growth rate decreased by 1.78 per cent points from the 4.03 per cent growth rate recorded in Q3, 2021 and decreased by 1.29 per cent points relative to 3.54 per cent in Q2 2022.”

However, it added, quarter-on-quarter real GDP grew at 9.68 per cent in Q3, 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter. In the quarter under review, aggregate GDP stood at N52,255,809.62 million in nominal terms.