Journal on Banking Financial Services & Insurance Research Vol. 8, Issue 5, May 2018, Impact Factor: 5.601 ISSN: (2231-4288) www.skirec.org Email Id: skirec.org@gmail.com An International Double-Blind, Peer Reviewed, Refereed Open Access Journal - Included in the International Indexing Directories Page 1 IMPACT OF GENERAL INSURANCE BUSINESS ON MONEY SUPPLY IN NIGERIA OKPARAKA, Vincent C. (Ph.D) Department of Insurance Faculty of Management Sciences Enugu State University of Science and Technology ASBTRACT This study was on impact of general insurance business on money supply in Nigeria. Its specific objectives were to examine impact of accident insurance premium, employers’ liability insurance premium, fire insurance premium, marine insurance premium and motor insurance premium on money supply in Nigeria. Ex-post facto research design was used in the study. Data was taken from Central Bank of Nigeria statistical bulletin of 2016. Ordinary Least Square regression was used as statistical analysis technique. It was found that accident insurance premium, fire insurance premium, marine insurance premium and motor insurance premium all had positive and significant effect on money supply in Nigeria, while employers’ liability insurance premium has positive and no significant effect on money supply in Nigeria. KEYWORDS: Money Supply, General insurance, Premium, Financial intermediation. INTRODUCTION Money is defined as anything that is accepted as payments for goods or services or in the repayment of debts (Sims, 2017). In that role, it serves to economize on the use of scarce resources devoted to exchange, expands resources for production, facilitates trade, promotes specialization, and contributes to a society's welfare (Thornton, 2000 as cited in Singh et al 2011). Money serves three functions: medium of exchange, unit of account and store of value. Medium of exchange role is the most important role of money. It eliminates need for barter, reduces transactions costs associated with exchange, and allows for greater specialization. As unit of account its importance particularly is in a diverse economy), though anything could serve as a unit of account. As a store of value, money tends to be relative to other assets like stocks and houses, which offer some expected return over time. The volume of money in circulation in an economy is an important indicator of economic deepening. That is to say, money supply determines the pace of any economic activities (Bakare, 2011). Its expansion or contraction dictates the growth in investment and output of