2025-03-27https://repository.covenantuniversity.edu.ng/handle/123456789/33056Insurance 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.application/pdfHF5601 AccountingArticle