Nigeria’s insurance industry recorded strong growth in 2025, yet its overall contribution to the country’s economy remains small compared with the banking sector.
According to the latest report by the National Bureau of Statistics, the financial services sector contributed ₦6.58 trillion to Nigeria’s GDP in 2025, representing a 15% increase from ₦5.74 trillion in 2024.
However, while banks dominated the sector’s output, insurance posted the fastest growth rate.
Insurance Growth Outpaces Expectations
The report shows that Nigeria’s insurance industry contributed ₦710.58 billion to GDP in 2025, a 16.04% rise from ₦612.35 billion recorded in 2024.
In Q4 2025 alone, the sector expanded by 21.37%, one of the strongest growth rates across financial services.
Overall contributions across the year were:
- Q1 2025: ₦1.78 trillion (finance and insurance combined)
- Q2 2025: ₦1.65 trillion
- Q3 2025: ₦1.51 trillion
- Q4 2025: ₦1.64 trillion
Despite this growth, the banking sector still dominated the space, contributing 90.43%, while insurance accounted for just 9.57% of the financial services sector’s GDP contribution.
Reforms Driving Momentum
Industry stakeholders say the sector’s strong performance was largely fueled by reforms, including the new insurance law signed by President Bola Ahmed Tinubu.
The Nigeria Insurance Industry Reform Act 2025 introduced sweeping changes such as higher capital requirements, improved claims settlement rules, and stronger consumer protection measures.
President of the Nigerian Council of Registered Insurance Brokers, Ekeoma Ezeibe, described the new law as a transformational framework for the industry.
She noted that the Act increased the professional indemnity requirement for brokers to ₦100 billion or 50% of annual revenue, strengthened claims settlement timelines, and introduced funds to protect policyholders and accident victims.
Still a Long Road to Economic Impact
Despite the growth, insurance remains a minor contributor to Nigeria’s GDP, accounting for less than 1%, far behind many African peers.
For comparison:
- South Africa: 12–14% insurance contribution to GDP
- Kenya: 2–3%
- Namibia: over 7%
- Mauritius and Morocco: over 4%
Stakeholders believe Nigeria’s large population should translate into much higher insurance penetration.
Hope for Stronger Growth
Insurance regulators say the sector’s transformation is already underway.
The Commissioner for Insurance at the National Insurance Commission, Olusegun Ayo Omosehin, said the reform law provides a once-in-a-generation opportunity to modernise the industry.
The regulator’s agenda focuses on stronger financial stability, improved governance standards, digitisation, and wider access to insurance products.
Industry operators remain optimistic that ongoing reforms, recapitalisation and increased infrastructure spending will help insurance expand its footprint and play a bigger role in Nigeria’s economic growth in the coming years.
