Effect of Insurance Investments on Nigerian Economic Development:1996-2016


Faculty: Management Sciences
Department: Banking And Finance


Ezekwe, K. C.
Ibenta, S. N. O.
Okaro, C. S.


This study examined the effect of Insurance Investments on Nigerian Economic Development: 1996-2016. This study was motivated by the seemingly poor perception of insurance in Nigeria and likely limited size of the gross premium income, hence its capacity to invest. There is also the inconclusive debate on Insurance Investments and economic growth and development. Empirical results of these studies reported mixed results on Insurance Investment on economic development. Ordinary Least Square (OLS) technique was used for the data analysis. The study revealed that Insurance Investment in government securities; real estate and mortgage has negative insignificant relationship with gross domestic products, there is positive relationship between insurance investment in stock and bonds, real estate and mortgage, bill of exchange with gross capital formation. Also, insurance investment in government securities, stock and bonds, real estate and mortgage and bill of exchange have no significant effect on economic growth, gross capital formation, infrastructural development, industrial production index, per capita income and employment level in Nigeria. It was recommended among others that the National Insurance Commission (NAICOM) should intensify effort in the supervision of the insurance sector to ensure that investments in the approved areas are strictly adhered to. Insurance industry should enhance improved perception and patronage of insurance products especially the strict enforcement of compulsory insurances with a view to increase premium income and investments in Nigeria.