Nigeria’s 2025 Insurance Sector Performance
Insurance penetration measures gross insurance premiums as a percentage of gross domestic product. It indicates the size of the insurance market relative to the economy, but it does not directly measure the proportion of people with insurance.
A country can record high penetration because of substantial life insurance, pensions-related annuities and large corporate risks, even if coverage is unevenly distributed among households.
NAICOM’s full-year 2025 report recorded gross premiums written of ₦2.301 trillion, compared with ₦1.558 trillion in 2024. The 47.3% increase represents substantial nominal growth, but it does not establish that the number of insured Nigerians increased at the same rate.
Non-life insurance accounted for 68.4% of premiums in 2025, while life insurance contributed 31.6%. Within non-life insurance, oil and gas represented 30.3% of premiums, fire insurance 20.4% and motor insurance 16.1%.
Motor insurance offers a different test of market development. Third-party motor insurance is compulsory, yet enforcement, fraudulent certificates and low public confidence have historically complicated compliance. Its contribution to premiums remains smaller than that of oil and gas and fire insurance.
2026 Figures
NAICOM’s second-quarter 2026 bulletin provides a more recent picture of the industry with Gross premiums written at ₦1.285tn, Total industry assets at ₦5.52tn, Gross claims reported at ₦369.2bn and Net claims paid at ₦279.1bn.
Non-life insurance accounted for 66.2% of premiums in the quarter, with life insurance contributing 33.8%. Oil and gas remained the largest non-life class, accounting for 27.7% of non-life premiums. Fire represented 20%, while motor insurance contributed 19.1%.
Total industry assets increased to ₦5.522 trillion, compared with ₦4.4 trillion in the corresponding quarter of 2025, a rise of 25.6%. The figures point to a larger industry, but the central question remains whether this additional financial capacity will support wider access and more reliable claims settlement.
Insurance Penetration Remains Low
Insurance penetration in Nigeria remains ridiculously low partly due to low income and limited awareness. This is because households facing high food, housing, transport and education costs may struggle to pay premiums for risks they hope never to experience. Insurance products can also be difficult to understand, particularly when exclusions, deductibles and claims procedures are poorly explained.
Trust is another important factor for insurance consumers who have experienced delayed or disputed claims, or encountered fraudulent motor insurance certificates. Such people may see insurance as a compulsory expense rather than a useful form of protection.
The structure of distribution also matters. Insurance sold through employers, banks, mobile networks and digital platforms can reach customers who would not ordinarily visit an insurer or broker. But convenient access is not enough: customers need affordable premiums, clear policy terms and a claims process that works.
