Strategic Financial Planning and Organisational Performance in Nigerian Insurance Firms

Strategic financial planning provides organisations with the analytical framework to align resource allocation with long-term objectives, yet its systematic application within Nigerian insurance companies remains underexplored. This study examines the relationship between strategic financial planning practices and organisational performance in selected insurance companies in Nigeria. Primary data are gathered from 90 senior finance and strategy managers across 15 insurance firms operating across the Lagos, Abuja, and Kano markets through structured questionnaires and unstructured interviews. Organisational performance is assessed through premium growth, combined ratio, return on equity, and policyholder satisfaction ratings. Strategic financial planning is measured through the comprehensiveness of budget cycles, scenario planning adoption, capital allocation rigour, and board-level strategic review frequency. Data are analysed using regression analysis and structural equation modelling. The research is grounded in the strategic management accounting literature and the resource-based view, with particular attention to the planning-performance literature in financial services. The study also examines how the National Insurance Commission's ongoing recapitalisation exercise has reshaped the strategic planning horizon of insurance firms. Existing literature confirms that firms with more sophisticated financial planning systems consistently outperform peers with informal or reactive planning processes. The Nigerian insurance sector's low penetration rate and growth potential create a particularly important context for examining how strategic planning supports industry expansion. Findings are expected to benefit insurance company boards, the National Insurance Commission, and professional finance bodies on improving financial strategy capacity in the sector. Keywords: strategic financial planning, insurance firms, organisational performance, Nigeria, capital planning