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Authors
1 OKPARAKA, VINCENT CHUKWUKA, (Ph.D.)
DEPARTMENT OF INSURANCE AND RISK MANAGEMENT
[email protected], 08035985711
2 ABIEGBE, SUCCESS OVEMESO
DEPARTMENT OF INSURANCE AND RISK MANAGEMENT
3 OKAFOR, OZOEMENA CHRISTIAN (Ph.D.),
DEPARTMENT OF MARKETING, ENUGU STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY (ESUT)
ABSTRACT
The study examined the relationship between credit to private sector and growth of insurance operations in Nigeria from 1997-2024. Specific objectives were to: ascertain linear association between credit to private sector and growth of insurance operations proxied by gross premium income, and also to examine the casual relationship between credit to private sector and growth of insurance operations proxied by gross premium income in Nigeria. The study adopted ex post facto research design. Correlation matrix and granger causality techniques were adopted in testing the formulated hypotheses. The findings revealed that there was significant positive linear association between credit to private sector and growth of insurance operation (r =0.980942, t-sat =24.73298, pv<0.0000) and there was unidirectional causality between credit to private sector and growth of insurance operations in Nigeria (GPI vs CPS = 0.0593; F-Sat =3.31821 while CPS vs GPI = 0.9263; f-Sat = 0.07691). The following recommendations were made, insurance firms should encourage collaboration between commercial banks and government agencies to provide comprehensive support services to insurance business operations by making necessary provisions for credit facilities to be available across the nation at large.
Keywords: Credit, Private Sector, Growth, Insurance Operations, Nigeria.
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