The Insurance Industry and Nigerian Economic Development
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Insurance arises from a contract between an insurer and an
assured/insured, whereby the former undertakes to provide against a risk on
behalf of the latter. The main function of insurance companies is to provide
compensation against risk and also to provide long-term capital to government
and corporate bodies. These functions are very crucial to the economy. Arising
from the above, this study investigates the contribution of insurance companies to
the economic development of Nigeria. The data used in the study was obtained
from the annual reports and statement of accounts of the Central Bank of Nigeria
(CBN). The data was analyzed using the method of Ordinary Least squares
(OLS). The main finding of this study is that the insurance industry has not
actually contributed much to Real Gross Domestic Product in Nigeria betWeen
1970 and 2002. The study suggests that the government should provide the
enabling environment for the industry to thrive, to carryout enlightenment
campaigns and to increase the capital base of the operators in the industry.
Keywords
HF5601 Accounting