Life insurance leads Nigeria’s insurance market with ₦276.8 billion in premiums

Key Takeaways

  • Life insurance dominates the market with ₦276.8 billion in gross premiums, more than any other sector.
  • Oil and Gas insurance follows as the second-largest segment, generating ₦188.7 billion in Q1.
  • Fire and Motor insurance sectors contributed ₦91.9 billion and ₦77.7 billion respectively, reflecting strong demand.
  • Aviation insurance recorded the least income at ₦16.6 billion, likely due to the limited scope of operations.
  • The top three segments (Life, Oil & Gas, and Fire) jointly account for over 75% of the total GPI in the quarter.

In the first quarter of 2025, Nigeria’s insurance industry showed significant concentration in a few key sectors. Life insurance stood out as the primary driver of Gross Premium Income, pulling in ₦276.8 billion, a clear indicator of growing awareness and adoption of life insurance products. Oil and Gas, a traditionally robust sector, followed with ₦188.7 billion, reflecting its capital-intensive nature and high-risk exposure. The Fire and Motor segments also maintained relevance, together contributing over ₦169 billion. Meanwhile, niche sectors like Aviation and Marine trailed behind, suggesting opportunities for expansion and diversification.

Source:

NAICOM

Period:

Q1 2025
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Non-oil company income tax and two other sources accounted for over 70% of Nigeria's tax revenue in 2024
  • Company Income Tax (Non-Oil) emerged as the largest contributor, accounting for over 30% of total tax revenue.
  • NCS-Import VAT followed closely, contributing 23.63%, emphasising the significance of import-related taxes to Nigeria's revenue.
  • Traditional oil-based taxes such as Petroleum Profit Tax/Hydrocarbon Tax and CIT (Oil & Gas) jointly contributed over 26%, showing that oil remains a vital but declining pillar.
  • Newer tax streams like the Electronic Money Transfer Levy and NASENI (National Agency for Science and Engineering Infrastructure) funding have emerged, but still make up less than 2% of total revenue.
  • Minor tax categories like Capital Gains Tax, NITDEF (National Information Technology Development Fund), and NPTFL (Nigeria Police Trust Fund) had negligible impact, each contributing less than 0.5%
Apapa Port accounted for 71.6% of Nigeria’s total trade value in Q1 2025 and 86.12% of total exports
  • Apapa Port accounted for 71.6% of Nigeria’s total trade value in Q1 2025 and 82.12% of total exports
  • Apapa Port handled ₦25.79 trillion worth of goods in Q1 2025, representing 71.6% of total trade. It remains the country’s primary trade hub, far surpassing all other ports combined.
  •  Apapa alone facilitated ₦17.74 trillion or 86.1% of Nigeria’s total exports, showing a high dependency on a single location for outbound goods.
  • Tin Can Island is the only meaningful secondary hub With ₦3.44 trillion (9.5%) in total trade, ranking a distant second. It’s the only other port contributing more than ₦1 trillion each to imports and exports.
  • Lekki has limited export impact, despite handling ₦1.70 trillion in imports. Lekki contributed only ₦0.30 trillion (1.5%) in exports, indicating underutilization for outbound trade.
  • Murtala Muhammed International Airport processed just ₦647.91 billion (1.8%) of total trade, reinforcing that Nigeria’s international trade remains heavily maritime-focused.
Lagos State's year-end outstanding foreign debt peaked in 2017, before gradually easing to $1.17 billion as of 2024
  • From just $190 million in 2006, Lagos State's year-end external debt rose significantly to over $1.1 billion by 2024, a more than 500% increase over 19 years.
  • The highest year-end debt was recorded in 2017 at $1.47 billion, with a gradual decline afterwards, except for a brief rise again in 2022–2023.
  • By 2024, Lagos State's external debt dipped slightly to $1.17 billion, suggesting some debt service or currency gain effects.
  • If Lagos State paid off or borrowed funds in a given year, only the remaining unpaid amount by year-end is shown in the data.
BUA Cement and Lafarge recorded over 100% profit growth in the first half of 2025
  • Dangote Cement reported the highest H1 2025 profit at ₦436.6 billion, up 50% from ₦291.7 billion in H1 2024.
  • BUA Cement’s profit more than doubled to ₦149.1 billion, a 164% rise from ₦56.5 billion in the same period last year.
  • BUA Cement had the fastest profit growth rate among the three major players, despite starting from a lower base.
  • Combined, the three firms posted over ₦720 billion in half-year profit, with Dangote alone accounting for over 60% of the total.
  • The sharp profit rises may reflect improved pricing, cost management, or benefits from forex gains after naira devaluation.
Number of road accidents by geopolitical zone in Nigeria (Cumulative, Q3 2020-Q3 2024)
  • The North Central zone accounts for the highest share of road accidents in Nigeria, contributing 34.55% of the national total.
  • Within the North Central zone, Abuja (FCT) recorded the most accidents, with a cumulative total of 8,133 cases.
  • The South West zone ranks second, responsible for 25.78% of all accidents nationwide, with Ogun State leading the zone at 6,418 accidents.
  • The South East zone has the lowest share, contributing just 5.38% of total accidents from Q2 2020 to Q2 2024.
  • Enugu State, the highest contributor within the South East, accounts for only 1.59% of the national total.
Nigeria’s foreign trade
  • Total Trade Volume in Q1 2025 stood at ₦36.02 trillion, with exports totalling ₦20.6 trillion and imports at ₦15.4 trillion, resulting in a surplus of ₦5.17 trillion.
  • Crude oil dominates Nigeria’s export trade, accounting for the largest share of export revenue. -
  • Other petroleum oil products are also a major export item, reflecting the significance of both raw and refined oil-based commodities in Nigeria’s trade portfolio. -
  • On the import side, manufactured goods dominate, showing Nigeria’s continued reliance on foreign machinery, technology, and consumer goods.
  • While Nigeria exports mostly raw and oil-based products, it imports refined, processed, or industrial goods, indicating a structural trade gap and limited local industrial capacity. -
  • Agricultural and raw material goods feature on both sides of trade, but their value is significantly less than petroleum-related trade.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved