Financial Intermediation and Growth of the Nigerian Economy: An Insurance Sector Perspective, 1986 - 2018

Main Article Content

Makwe Stella Ivo
Anyanwaokoro Mike
Ijeoma Uchenna Camenus


The purpose of this study was to investigate the financial intermediation and growth linkage in the Nigerian Economy with focus on the Insurance sector covering the period 1981 to 2018. Annual time series from Central Bank Statistical Bulletin was employed following an ex-post facto research design and using the Autoregressive Distributed Lag Model (ARDL) for empirical analyses. It was found that insurance premium and insurance claims significantly affected the growth rate of the economy. It is therefore recommended that the intermediation roles of the financial system should be encouraged and due attention given to the hitherto neglected insurance sector to allow for all-inclusive growth.

Insurance, claims, income, Nigerian economy, ARDL

Article Details

How to Cite
Ivo, M. S., Mike, A., & Camenus, I. U. (2020). Financial Intermediation and Growth of the Nigerian Economy: An Insurance Sector Perspective, 1986 - 2018. Asian Journal of Education and Social Studies, 9(4), 38-46.
Original Research Article


Merton RC. Financial innovation and the management and regulation of financial institutions.J. Bank. Financ. 1995;19(3/4):461-481.

Beck T, Webb I. Economic demographic and institutional determinants of life insurance consumption. World Bank Econ. 2003;1(2):51-88.

Ching KS, Kogid M, Furuoka F. The causal relationship between life insurance funds and economic growth: evidence from Malaysia. ASEAN Econ. Bullet. 2000;27(2):185-199.

Haiss P, Sumegi K. The relationship between insurance and economic growth in Europe: A theoretical and empirical analysis. Empirica. 2008;35(4):405-431.

Njegomir V, Stojic D.. Does insurance promote economic growth: The evidence from Ex-Yugoslavia region.Ekonomska Misao I Praksa. 2010;1:31-48.

Verma A, Bala R. The relationship between life insurance and economic growth: Evidence from India. Global J. Manage. Bus. Stud. 2013;3(4):413-422.

Iwedi M, Igbanibo DS. Modeling financial intermediation functions of banks: theory and empirical evidence from Nigeria. Research Journal of Finance and Accounting. 2015;6(18):159 -174.

Sahoo S. Financial intermediation and growth: Bank-based versus market-based systems, The Journal of Applied Economic Research. 2014;8(2):93-114.

Nwaeze C, Onydikachi M, Nwabekee CE. Financial intermediation and economic growth In Nigeria: The Macrotheme Review A Multidisciplinary Journal of Global Macro Trends. 2014;3(6): 11-23

Oleka CD, Sabina EA, Onyeze CN. The empirical study of the impact of intermediation roles of banks on economic growth: A case study of Nigerian Experience. Humanity and Social Sciences Journal. 2014;9(2):49-60.

Valev N. Financial development and economic growth in Bulgaria. Atlanta: Department of Economics, Andrew Young School of Policy Studies, Georgia State University Atlanta; 2012.

Ayadi R, Arbak ES, De Groen WP. Financial development, bank efficiency and economic growth across the Mediterranean. MEDPRO Technical Report No. 30; 2013.

Ogunmuyiwa MS, Ekone AF. Money supply-economic growth nexus in Nigeria. Journal of Social Sciences. 2010;22(3):199-204.

Nouri M, Samimi A. The impact of monetary policy on economic growth in Iran. Middle-East Journal of Scientific Research. 2011;9(6):740-743.

Owolabi AU. Money supply, foreign exchange regimes and economic growth in Nigeria. Research Journal of Finance and Accounting. 2014;5(8):121-129.

Goldsmith RW. Financialstructure and development. New Haven: Yale University Press; 1969.

Shaw D. Finance and growth in the EU: New evidence from the harmonization of the banking industry. Journal of Banking and Finance. 1973;31(3):1937-1954.

Mckinnon R. Money and Capital in Economic Development, Washington. The Brooking Institute; 1973.

Monogbe TG. Impact of insurance sector development and the growth of the Nigeria economy: International Journal of Advanced Academic Research - Social Sciences and Education. 2015;1 (2):10-17