Insurance Sector Storms Ahead as Nigeria’s Economy Heats Up
Finance & Insurance Surpass Full-Year 2024 Performance — Here’s What’s Driving the Boom
Nigeria’s finance and insurance sector is recording one of its strongest performances yet, outpacing last year’s full-year figures even before the end of 2025.
Sector Growth at a Glance
• The finance and insurance subsector has already hit ₦1.22 trillion in GDP contribution (FY 2024: ₦1.18 trillion).
• The sector grew 40.55% (nominal terms) year-on-year.
• Financial institutions: +41.80%
• Insurance: +32.44%
• Growth was 20.86 percentage points higher than Q3 2024 but 23.11 points lower than Q2 2025.
In real terms, the sector expanded by 19.63%, a notable jump of:
• +15.29 percentage points compared with Q3 2024
• +3.50 percentage points compared with Q2 2025
However, real growth quarter-on-quarter slowed to –8.42%, indicating cooling activity after a strong second quarter.
The sector contributed 2.65% to real GDP:
• Higher than 2.30% in Q3 2024
• Lower than 3.23% in Q2 2025
What Industry Leaders Are Saying
1. Ebelechukwu Nwachukwu (CEO, Rex Insurance)
She highlights several forces powering the sector:
A More Active Economy
• Construction, real estate, engineering, oil & gas, and trade activities are expanding.
• Insurance typically rises when economic activity rises — and that’s exactly what is happening.
Better Claims Payments = More Trust
• Insurance companies are paying claims more consistently, boosting customer confidence.
• With more trust comes more policy uptake.
Technology Boost
• Direct digital insurance, online claims filing, and automated processing have improved accessibility.
• Tech adoption is attracting younger and more tech-savvy customers.
Increased Public Awareness
• Market storms, roadshows, and public campaigns are creating broader market visibility.
2. Stephen Alangbo (CEO, Cornerstone Insurance Plc)
He ties the sector’s strong Q2/Q3 performance to anticipated recapitalisation, now materialising.
Key factors:
• Companies are strengthening their capital base.
• Positive analyst ratings are boosting investor appetite.
• Surging share prices of insurance companies reflect renewed trust.
Broader Economic Context
Nigeria’s overall GDP grew 3.98% in Q3 2025, slightly above 3.86% in the same period of 2024, but lower than 4.23% in Q2 2025.
The insurance and finance sector stands out as one of the bright spots, supporting broader economic growth despite structural challenges.
Finance & Insurance Surpass Full-Year 2024 Performance — Here’s What’s Driving the Boom
Nigeria’s finance and insurance sector is recording one of its strongest performances yet, outpacing last year’s full-year figures even before the end of 2025.
Sector Growth at a Glance
• The finance and insurance subsector has already hit ₦1.22 trillion in GDP contribution (FY 2024: ₦1.18 trillion).
• The sector grew 40.55% (nominal terms) year-on-year.
• Financial institutions: +41.80%
• Insurance: +32.44%
• Growth was 20.86 percentage points higher than Q3 2024 but 23.11 points lower than Q2 2025.
In real terms, the sector expanded by 19.63%, a notable jump of:
• +15.29 percentage points compared with Q3 2024
• +3.50 percentage points compared with Q2 2025
However, real growth quarter-on-quarter slowed to –8.42%, indicating cooling activity after a strong second quarter.
The sector contributed 2.65% to real GDP:
• Higher than 2.30% in Q3 2024
• Lower than 3.23% in Q2 2025
What Industry Leaders Are Saying
1. Ebelechukwu Nwachukwu (CEO, Rex Insurance)
She highlights several forces powering the sector:
A More Active Economy
• Construction, real estate, engineering, oil & gas, and trade activities are expanding.
• Insurance typically rises when economic activity rises — and that’s exactly what is happening.
Better Claims Payments = More Trust
• Insurance companies are paying claims more consistently, boosting customer confidence.
• With more trust comes more policy uptake.
Technology Boost
• Direct digital insurance, online claims filing, and automated processing have improved accessibility.
• Tech adoption is attracting younger and more tech-savvy customers.
Increased Public Awareness
• Market storms, roadshows, and public campaigns are creating broader market visibility.
2. Stephen Alangbo (CEO, Cornerstone Insurance Plc)
He ties the sector’s strong Q2/Q3 performance to anticipated recapitalisation, now materialising.
Key factors:
• Companies are strengthening their capital base.
• Positive analyst ratings are boosting investor appetite.
• Surging share prices of insurance companies reflect renewed trust.
Broader Economic Context
Nigeria’s overall GDP grew 3.98% in Q3 2025, slightly above 3.86% in the same period of 2024, but lower than 4.23% in Q2 2025.
The insurance and finance sector stands out as one of the bright spots, supporting broader economic growth despite structural challenges.