Insurance Sector Records 15.68% Growth In Q1- Nigeria.

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The Nigerian insurance sector grew by 15.68% in 2022 Q1 financial period- the National Bureau of Statistics, NBS.

The statement said, “The financial and insurance accounted for 89.12% and 10.88% of the sector respectively in real terms in Q1, 2022. “As a whole, the sector grew at 32.29 % in nominal terms with the growth rate of financial institutions at 34.65% and 15.68% growth rate recorded for insurance.“The overall rate was higher than that of Q1, 2021 by 30.14% points, and higher by 7.36 % points than the preceding quarter.”

According to the report, quarter-on-quarter growth was 12.74%. The sector’s contribution to the overall nominal GDP was 3.80 % in Q1 2022, higher than the 3.25 % in the previous year. Growth in this sector in real terms totaled 23.24%, higher by 23.70% points from the rate recorded in the 2021Q1 and down by 0.90% points from the rate recorded in the preceding quarter. Quarter-on-quarter growth in real terms stood at 5.01%.

The contribution of finance and insurance to real GDP totalled 4.51 per cent, higher than the contribution of 3.77 per cent recorded in the first quarter of 2021 by 0.74 per cent points, and higher than 3.66 per cent recorded in Q4 2021 by 0.84 per cent points. According to the report, Nigeria’s GDP grew by 3.11 per cent (year-on-year) in real terms in the first quarter of 2022, showing a sustained positive growth for the sixth consecutive quarter since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020.

The first quarter of the 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4, 2020, is an indication of gradual economic stability. It added that the Q1, 2022, the growth rate was higher than the 0.51 per cent growth rate recorded in Q1, 2021 by 2.60 per cent points and lower than 3.98 per cent recorded in Q4 2021 by 0.88 per cent points.
“Nevertheless, quarter-on-quarter, real GDP grew at -14.66 per cent in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter. “In the quarter under review, aggregate GDP stood at N45,317,823.33 million in nominal terms.”

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