As firms and households navigated relentless economic headwinds in the financial year ended 31 December 2025, the Nigerian insurance sector posted strong growth. The estimated insurance revenue surged by 40.8% to ₦1.9 trillion, while the investment portfolio maintained an upward trajectory, nudging total assets towards the ₦5 trillion threshold. Intensified business generation, the assertive role of NAICOM and improved efficiency in investment management contributed to the growth recorded during the year under review.
The financial year ended 31 December 2025 witnessed the most comprehensive overhaul of the Nigerian insurance industry’s regulatory framework, with the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The Act significantly enhances NAICOM’s supervisory powers, providing the legal teeth to withdraw operating licences from erring operators and updating penalties to reflect contemporary economic realities. NIIRA 2025 also expanded the compulsory insurance policies to 11 from the hitherto six to improve insurance uptake as the economy strives to expand to the $1 trillion mark.
The Act also raised the minimum capital for the various insurance segments. The regulatory implementation guidelines for NIIRA 2025 adopted the net admissible assets as the proxy for measuring the minimum capital. Thus, we anticipate the injection of circa ₦270 billion before the 30 July 2026 regulatory deadline. Our analysis indicates that circa 63% of this capital injection will originate from the non-life segment, which remains populated by several severely undercapitalised players. Conversely, life insurers will account for only 13% of additional capital, while composite insurers will inject the remaining 24%. We believe the capital injection will increase the risk underwriting capacity of insurers and bolster the ability to pay claims promptly. The ongoing investment in digital infrastructure and the revamp of the product distribution model will further drive business growth.
Our Agusto & Co.’s 2026 Insurance Industry Report include an analysis of the following:
