The insurance sector’s growth fell by 7.25 per cent in the first quarter of 2023, the latest figures obtained from the National Bureau of Statistics have revealed.
The NBS disclosed in its ‘Nigeria Gross Domestic Product Q1, 2023’ that the finance and insurance sector consists of two subsectors which are financial institutions and insurance.
It stated that the former accounted for 91.75 per cent while the latter accounted for 8.25 per cent of the sector respectively in real terms in Q1, 2023.
The report stated that “As a whole, the sector grew at 22.37 per cent in nominal terms (year-on-year), with the growth rate of financial institutions at 25.99 per cent and -7.25 per cent growth rate recorded for insurance.
“The overall rate was lower than Q1, 2022 by 9.91 per cent points, and lower by 0.21 per cent points than the preceding quarter. The quarter-on-quarter growth was 12.55 per cent.”
Analysts had predicted a decline in economic performance over the cash crunch crisis that emanated from the Central Bank of Nigeria’s naira redesign policy.
According to the report, the sector’s contribution to the nominal GDP was 4.11 per cent in Q1, 2023, higher than the 3.80 per cent it represented a year before, and higher than the contribution of 3.30 per cent it made in the preceding quarter.
Growth in this sector in real terms totalled 21.37 per cent, lower by 1.86 per cent points from the rate recorded in the 2022 first quarter and higher by 9.76 per cent points from the rate recorded in the preceding quarter.
It stated that “Quarter-on-quarter growth in real terms stood at 14.20 per cent. The contribution of finance and insurance to real GDP totalled 5.35 per cent, higher than the contribution of 4.51 per cent recorded in the first quarter of 2022 by 0.84 per cent points, and higher than 3.95 per cent recorded in Q4, 2022 by 1.40 per cent points.”
The report added that Nigeria’s, “GDP grew by 2.31 per cent (year-on-year) in real terms in the first quarter of 2023.
“This growth rate declined from 3.11 per cent recorded in the first quarter of 2022, and 3.52 per cent in the fourth quarter of 2022.
“The reduction in growth is attributed to the adverse effects of the cash crunch experienced during the quarter.”