Empirical Analysis of Insurance Consolidation and the Economic Growth in Nigeria

Abstract

The study is prompted by the need to understand the relationship between the insurance consolidation and the growth of the Nigerian economy, between the period 1990-2012. Data was sourced from Annual report of National insurance commission NAICOM and central bank of Nigeria (CBN) and was analyzed using some econometrics modeling test. The results of the study revealed that the components of insurance consolidation were positively and significantly correlated with GDP growth in Nigeria. The VEC model confirmed short term and long term co-integration between insurance consolidation and economic growth in Nigeria. the Granger causality test revealed a dual causality between the overall variables and economic growth. The study further suggest that since the trend of macroeconomic variables were stable over the years, government should embark on more realistic insurance policy implementation for faster economic growth in Nigeria.