Nigeria’s insurance boom hits record N4.6 trillion as stricter capital rules loom
Nigeria’s insurance sector has seen rapid growth in the first half of 2025. Total assets climbed to a record N4.619 trillion by the end of Q2, up by nearly N1 trillion from the same period last year. The rise comes as firms prepare for stricter capital rules ahead of a 2026 deadline.
The sector’s total assets expanded by 25.3% year-on-year, rising from N3.687 trillion in Q2 2024. A quarter-on-quarter increase of N454 billion—10.9% higher than Q1’s N4.165 trillion—also contributed to the surge. Stronger premium collections and higher investment activity drove this growth, reinforcing the industry’s role in Nigeria’s financial system.
Liabilities followed a similar upward trend, reaching N4.619 trillion in Q2 2025. This marked a 25.3% annual increase, with an additional N454 billion rise compared to the previous quarter. The expansion reflects insurers broadening their underwriting capacity and diversifying their portfolios.
Regulators are tightening oversight as part of a recapitalisation push. The National Insurance Commission (NAICOM) introduced a capital verification framework to ensure transparency. Eighteen companies have already signalled readiness to undergo this process. Only those meeting the minimum capital requirements by July 30, 2026, will keep their operating licences.
The industry’s asset and liability growth highlights its strengthening position in Nigeria’s economy. Firms now face a critical period as they adjust to new capital rules before the 2026 cutoff. Those failing to comply risk losing their licences, reshaping the sector’s competitive landscape.
