Nigeria’s insurance sector recorded gross premium income of N2.301 billion in the fourth quarter of 2025, reflecting strong growth across key segments, according to the National Insurance Commission (NAICOM).
The commission attributed the performance to increased activity in the oil and gas segment within non-life insurance, alongside rising annuity funds in the life insurance market.
Non-life insurance dominated the market, contributing 68.4 per cent of total premiums, while life insurance accounted for 31.6 per cent.
Within the non-life segment, oil and gas led with 30.3 per cent of premiums. Fire insurance followed at 20.4 per cent, while motor insurance contributed 16.1 per cent. Other segments, including marine, aviation, general accident, and miscellaneous insurance, also supported overall growth.
NAICOM said the sector’s performance reflects ongoing regulatory efforts to deepen the market and enhance policyholder protection.
A key reform is the mandatory contribution to the Insurance Policyholders’ Protection Fund (IPPF), requiring insurers to remit 0.25 per cent of their net premium income annually. The policy is backed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with sanctions for non-compliance, including licence suspension or withdrawal.
The data highlights the continued importance of oil and gas risks in driving insurance demand, while steady contributions from fire and motor insurance reflect broader economic activity.
More broadly, the finance and insurance sector is gaining momentum. Data from the National Bureau of Statistics shows the sector grew by 14.54 per cent in 2025, up from 2.95 per cent in 2024.
Although still a smaller component of the economy, the insurance subsector is gradually expanding as reforms improve efficiency, transparency, and market confidence.
