As Nigeria’s insurance and pension industries head into 2026, the stakes are rising amid persistent macroeconomic pressures, regulatory reforms and growing public demand for value and accountability. The coming year could prove decisive in determining whether the sectors finally unlock their long-promised potential or remain constrained by low trust and limited reach.
The insurance industry closed 2025 on a stronger footing, buoyed by rising premium income, tighter regulatory oversight and renewed investor interest following the enforcement of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025) by the National Insurance Commission (NAICOM). Recapitalisation efforts and governance reforms have further reshaped the landscape.
Despite these gains, insurance penetration remains below one per cent, underscoring long-standing challenges around public trust, product relevance and access. Analysts say this gap highlights a disconnect between policy offerings and the realities of Nigeria’s largely informal economy.
Looking ahead to 2026, industry attention is expected to focus on expanding microinsurance and digital distribution channels to reach underserved segments. Other priorities include closing the claims trust gap through improved transparency in payouts, strengthening compliance with compulsory fire and property insurance—particularly in high-risk areas—and deepening collaboration with state governments to enforce mandatory insurance policies.
Climate-related risks are also reshaping expectations. With market fires, floods and other natural disasters on the rise, insurers are under growing pressure to move beyond risk avoidance toward proactive risk management, resilience building and broader inclusion.
Pensions Seek Balance
In the pension sector, the Contributory Pension Scheme (CPS), overseen by the National Pension Commission (PenCom), recorded steady progress in 2025. Total assets crossed N18 trillion, alongside moderate growth in Retirement Savings Accounts (RSAs). However, concerns persist around benefit adequacy, particularly for informal sector workers and contributors approaching retirement.
Key expectations for 2026 include deeper penetration of the Micro Pension Plan, increased RSA transfers as competition among Pension Fund Administrators (PFAs) intensifies, greater diversification of investments into infrastructure and impact-driven sectors, and enhanced retirement planning education to address financial literacy gaps.
Meanwhile, under the Defined Benefit Scheme (DBS) managed by the Pension Transitional Arrangement Directorate (PTAD), ongoing efforts to clear arrears, improve biometric verification and digitise pension records are expected to remain central to service delivery improvements.
Inclusion or Missed Opportunity?
Both industries face a shared challenge: inclusion. With only about 19 million Nigerians enrolled in pension schemes and fewer than two million holding insurance policies, participation levels remain low relative to a population estimated at over 230 million.
Experts argue that translating growth into real impact in 2026 will require sustained investment in consumer education, product redesign tailored to everyday needs, and a stronger commitment to trust-building through service delivery and accountability.
Outlook
While 2026 presents fresh opportunities, success will depend on execution. Industry operators must align commercial objectives with national development goals, while regulators are expected to remain firm but supportive. For millions of Nigerians—particularly young people and informal workers—the coming year may determine whether insurance and pensions become tools for security and inclusion, or remain distant concepts.
