Nigerian insurers collected N2.3 trillion in premiums during 2025, a sharp jump of 47 percent from the N1.5 trillion recorded in 2024. The growth signals stronger appetite for insurance coverage across the economy, even as the sector grapples with inflation and currency pressures that have squeezed many businesses.
Non-life insurance, which covers risks like property damage, liability, and motor accidents, drove the expansion. This segment accounted for N1.5 trillion, or about 68.4 percent of total premiums. Oil and gas insurance, fire coverage, and motor insurance were the main contributors within the non-life category, reflecting Nigeria's reliance on petroleum revenues and the volume of vehicles on the roads.
Life insurance, which includes death benefits and savings-linked policies, made up the remainder. The sector has been pushing customers toward long-term protection and investment products as the naira weakened and Nigerians sought ways to preserve wealth. Rising interest rates set by the CBN also made insurance-linked savings more attractive compared to some other investment options.
The 47 percent year-on-year growth outpaced inflation for the period, suggesting genuine expansion in coverage rather than mere price increases. However, the insurance industry remains relatively small compared to the broader economy. Analysts note that penetration rates in Nigeria sit far below global standards, with many households and businesses still underinsured or uninsured altogether.
The oil and gas sector's continued reliance on insurance drove premiums higher as companies maintained coverage on platforms, pipelines, and operations exposed to environmental and operational risks. Motor insurance growth tracked alongside the rising cost of vehicle ownership and maintenance in a high-inflation environment, while fire insurance picked up as businesses protected assets against the risk of losses.
The National Insurance Commission, the sector's regulator, has been pushing for better practices and higher capital requirements to strengthen the industry. Consolidation among smaller players has also accelerated, with mergers and acquisitions creating bigger, more stable companies.
The sector will need to sustain this momentum through 2026. Insurance firms face pressure to improve claim settlement times and digital service delivery to retain customers and attract new ones from the growing middle class.
