Friday 30 May 2014

Inadequate data debased insurance contributions to GDP



Rebase Nigeria GDP
Chuks Udo Okonta

Insurance operators inability to articulate and provide adequate data of their operations may be responsible for the slide from 0.7 per cent to 0.6 per cent of the insurance industry’s contributions to the (Gross Domestic Product) in the recently rebase exercise which placed Nigeria as the largest economy in Africa.   

At a forum recently organised by the Chartered Insurance Institute of Nigeria (CIIN), operators noted that the industry’s contributions were underestimated, adding that the industry has in recent times made significant progress.

They also agreed to go back to their drawing boards to correct the abnormally by doing the needful. They called for proper documentation of the industry’s data, which will bring about proper valuation of the progress made in the sector.

Commissioner for Insurance Fola Daniel, who is also not comfortable with the rating, said going forward, the Commission would consolidate on the gains made so far and ensure proper implementation of compulsory insurance products to be able to enhance the industry contribution to GDP.

“You are all aware of the recent rebasing of the economy which now makes the Nigerian economy the largest in Africa and 26th largest economy in the world. This has placed enormous responsibility on the industry. With the old based economy, the sector barely contributed 0.7 per cent to GDP. With the rebasing, the contribution of the sector to GDP has been further weakened. This therefore calls for more dynamic strategies to enable the sector make meaningful contribution to the GDP,” he said.

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