CHALLENGES OF SUSTAINABLE ECONOMIC GROWTH IN NIGERIA: INSURANCE SECTOR’S INVESTMENT TO THE RESCUE
Abstract
This study empirically and comparatively analyses the insurance companies’ investment portfolios and their contributions to economic growth in Nigeria. The study covers the period from 1980 to 2025. It employs Unit root, Co-integration and Error Correction Model techniques in analyzing the secondary data sourced from Central Bank of Nigeria Statistical Bulletin. The results indicate that the time series data are stationary and prevalence of a significant long run relationship between various proxies of insurance companies. Investment portfolio and economic growth proxied by gross domestic product. Specifically, the results provide evidence that Insurance sector’s investment in Stocks and Bonds (STB), Real Estate and Mortgage (REM) as well as Cash and Bank Deposit (CBD) are all significant in explaining variations in gross domestic product (GDP), the dependent variable. On the other hand, however, insurance sector’s investment in Government Securities (GSE), shows insignificant relationship with the dependent variable, gross domestic product. This implies that investment portfolios of insurance companies have varied contribution to economic growth in Nigeria within the period under study. Consequently, the study recommends among others that insurance companies in Nigeria should increase their investments on government securities, real estate and mortgage, policy and other loans, as well as cash at hand and deposits for more feasible contribution to the economic growth in Nigeria.
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Published in AFRICAN JOURNAL OF ORGANIZATIONAL PERSPECTIVES AND ECONOMY
ISSN: 988-47877
This article appears in our peer-reviewed academic journal
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