By Chiamaka Ajeamo [email protected] 08060655687
The Nigerian insurance sector declined by 2.08 per cent in the first quarter of 2021, data obtained from the National Bureau of Statistics (NBS) has disclosed.
The NBS in its report on Gross Domestic Product (GDP) for the first quarter of 2021, revealed that the sector accounted for 12.45 per cent of the financial sector in the period under review.
The report stated, “The financial and insurance services sector consists of two subsectors, financial institutions and insurance, which accounted for 87.55 per cent and 12.45 per cent of the sector respectively in real terms in Q1 2021.
“The sector grew at 2.15 per cent in nominal terms (year on year), with the growth rate of financial institutions as 2.78 per cent and –2.08 per cent growth rate recorded for Insurance.
“The overall rate was lower than that in Q1 2020 by -21.81 per cent points, but 3.25 per cent points higher than the preceding quarter.
“Quarter-on-quarter growth stood at 6.47 per cent. The sector’s contribution to the aggregate nominal GDP was 3.25 per cent in Q1 2021, lower than the 3.57 per cent it represented the previous year, but higher than the contribution of 2.80 per cent in the preceding quarter.”
Furthermore, the report noted that in real terms, the financial and insurance services sector grew by –0.46 per cent or –21.26 per cent points lower from the rate recorded in Q1 2020, but 3.16 per cent points higher than the rate recorded in the preceding quarter.
“Quarter-on-quarter growth in real terms stood at 5.78 per cent. The sector’s contribution to real GDP was 3.77 per cent, lower than the contribution of 3.81 per cent recorded in the first quarter of 2020 by –0.04 per cent points, but higher than 3.07 per cent recorded in Q4 2020 by 0.70 per cent points.
The insurance sector contracted by 12.05 per cent in Q4 2020, the report added.