Insurance Penetration and Economic Growth in Nigeria: A Descriptive Analysis

This study undertakes a descriptive analysis of the relationship between insurance penetration and economic growth in Nigeria from 2015 to 2023. Insurance penetration, measured as total insurance premiums as a percentage of gross domestic product (GDP), serves as a commonly cited indicator of financial sector development and risk management maturity. Nigeria's insurance penetration rate has remained consistently below one percent of GDP, placing it among the lowest in Africa despite being the continent's largest economy by nominal output. This research relies entirely on secondary data sourced from the National Bureau of Statistics (NBS), NAICOM annual reports, the Central Bank of Nigeria (CBN) statistical bulletin, and World Bank indicators. Trend analysis and descriptive statistics trace the evolution of key variables including premium income, claims ratio, insurance density, and GDP growth over the study period. The study explores sectoral contributions to premium income and identifies industries, including oil and gas, aviation, and marine, where insurance penetration is comparatively higher. Preliminary findings are expected to reveal a persistent structural disconnect between Nigeria's economic size and its insurance market depth. The research recommends comprehensive market development strategies targeting retail insurance segments and regulatory reforms to strengthen consumer confidence. Keywords: Insurance Penetration, Economic Growth, GDP, NAICOM, Nigerian Insurance Market.