Nigeria faces economic risks due to low insurance penetration

Experts are warning that Nigeria’s economic resilience is threatened by a significant insurance protection gap. While gross premiums written are projected to rise from 1.6 trillion naira in 2024 to 2.3 trillion naira in 2025, insurance penetration remains below one percent of the nation's GDP.

Dr. Femi Oyetunji, Chairman of SanlamAllianz Life Insurance Nigeria Limited, noted that many households, businesses, and public assets remain exposed to risks such as floods, equipment failure, and cyberattacks. He emphasized that the insurance challenge should be viewed as a matter of national economic stability rather than just an industry issue.

To address these vulnerabilities, Dr. Omogbai Omo-Eboh, SAN, suggested integrating compulsory insurance into public services. He proposed that the Nigeria Insurance Industry Reform Act (NIIRA) 2025 could make insurance compliance a requirement for licensing, permits, and public procurement. By linking insurance to services like vehicle license renewals and building approvals, the state could act as a compliance anchor, helping to manage disaster-related expenditures and mobilize long-term capital for infrastructure and job creation.