Nigeria’s insurance sector recorded a significant milestone at the end of the second quarter of 2025, with total assets rising to a record N4.619 trillion, according to the Central Bank of Nigeria’s latest quarterly statistical bulletin. The increase highlights the industry’s growing resilience and expanding investment activities, despite ongoing macroeconomic challenges.
The latest data underscores the sector’s ability to grow its underwriting capacity while diversifying into both tangible and intangible assets, positioning the industry as a stronger contributor to Nigeria’s financial system.
Strong Quarter-on-Quarter and Year-on-Year Growth
The CBN report shows that total assets increased by N454 billion quarter-on-quarter, representing a 10.9% rise from N4.165 trillion in Q1 2025. On a year-on-year basis, assets grew by nearly N1 trillion, marking a 25.3% increase from N3.687 trillion in Q2 2024.
The surge in assets is largely driven by increased premium inflows and higher investment activity as insurers expand their portfolios and embrace technology-driven innovations.
Liabilities Rise in Tandem
While assets hit record highs, the sector’s liabilities also peaked at N4.619 trillion in Q2 2025. Liabilities rose by N454 billion quarter-on-quarter, representing a 10.9% increase from N4.165 trillion in Q1 2025, and by N932 billion year-on-year, a 25.3% increase from Q2 2024.
Recapitalisation Deadline Looms
The industry is also racing to meet the National Insurance Commission’s (NAICOM) revised capital requirement ahead of the July 30, 2026 deadline. In November 2025, NAICOM announced that 18 insurance companies had indicated readiness for capital verification, a key step in the ongoing recapitalisation exercise.
At the EY Insurance Summit 2025, NAICOM’s CEO, Olusegun Omosehin, described the industry’s response as encouraging. He noted that the commission has set up a capital verification framework to ensure transparency and credibility, adding that only firms meeting the minimum capital requirements by the deadline will retain their operating licences.
Recapitalisation Roadmap
- September 30, 2025: Deadline for submission of recapitalisation plans
- November 2025 – June 2026: Capital verification exercises
- July 30, 2026: Final compliance deadline
The record asset growth and increased liabilities reflect the sector’s strategic expansion and stronger financial footing, even as insurers work to meet regulatory capital benchmarks.