Keypoints
- Gross Premium in the Nigerian insurance sector reached N2.301 billion in the fourth quarter of 2025, according to the National Insurance Commission (NAICOM).
- The non-life segment dominated the market, contributing 68.4% of the total premium, while the life segment accounted for 31.6%.
- Oil and gas remained the leading portfolio in the non-life category, representing 30.3% of premiums generated.
- Fire insurance and motor insurance followed as the next largest contributors, accounting for 20.4% and 16.1% respectively.
Main Story
In a performance report released on Monday in Abuja, NAICOM stated that the insurance sector’s growth is a direct result of regulatory measures aimed at deepening market penetration.
The commission explained that the impressive figures in Q4 2025 were largely driven by significant activity in the oil and gas sector and the expansion of annuity funds within the life segment. This trajectory mirrors the market’s performance in 2024, reinforcing the dominance of non-life business.
The report mentioned that behind the leading oil and gas portfolio, other segments like General Accident, Marine, and Aviation also made measurable contributions.
Specifically, fire insurance maintained a strong position at over 20%, while the miscellaneous and marine categories contributed 11.9% and 8.7% respectively. The commission observed that the growth in annuity funds highlights a rising public interest in long-term financial security through life insurance products.
The Issues
The primary challenge for the insurance sector is market penetration, as the total premium relative to the national GDP remains lower than other African peers. Authorities must solve the problem of public trust, which often hinders the adoption of life insurance and annuity products despite their growing contributions. Furthermore, there is a heavy concentration risk in the oil and gas sector; while it drives revenue, it makes the industry vulnerable to global energy price shocks. To ensure sustainable growth, insurers must now diversify their portfolios toward micro-insurance and retail products that cater to the millions of Nigerians currently outside the formal financial net.
What’s Being Said
- “The performance was reflective of the ongoing regulatory measures aimed at fostering market deepening,” stated NAICOM.
- Insurance analysts have noted that the 30.3% contribution from oil and gas highlights the sector’s critical link to Nigeria’s primary export economy.
- Industry observers mentioned that the rise in annuity funds is a positive sign for the life insurance segment, which has traditionally lagged behind non-life.
- Brokers in Lagos have advocated for more aggressive enforcement of compulsory insurance policies to further boost the motor and fire insurance portfolios.
What’s Next
- NAICOM is expected to introduce stricter supervision of the annuity segment to protect the growing life insurance funds from mismanagement.
- Further regulatory reforms are anticipated to encourage the digitalization of insurance sales, aiming to reach the retail market more efficiently.
- The 2026 fiscal year is likely to see insurance companies pivoting toward agricultural insurance to hedge against the concentration in oil and gas.
- Increased collaboration between insurers and the energy sector is expected as Bonny Light prices stay above $110, potentially driving even higher premiums in 2026.
Bottom Line
The N2.3 billion premium mark is a milestone for NAICOM, showing that the industry is successfully leveraging Nigeria’s industrial sectors. However, the future of the market depends on moving beyond the “big oil” contracts and convincing the average Nigerian that insurance is a necessary investment for daily life.
