Total assets held by insurance companies in Nigeria surged to a record N4.619 trillion at the end of the second quarter of 2025.
This is according to the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin, which highlights the sector’s growing resilience and focus on investments in both tangible and intangible assets.
The record underscores the insurance industry’s ability to withstand macroeconomic pressures while expanding its underwriting capacity and diversifying portfolios.
The growth reflects stronger premium inflows and higher investment activity, positioning the sector as a more sustainable contributor to Nigeria’s financial system.
What the data is saying
According to the CBN data, total assets grew by N454 billion quarter-on-quarter in Q2 2025, representing a 10.9% increase compared to Q1’s N4.165 trillion.
On a year-on-year basis, the sector’s total assets expanded by nearly N1 trillion, marking a 25.3% increase from N3.687 trillion in Q2 2024.
The growth in total assets is largely driven by higher investments and increased premium inflows as insurers expand their underwriting capacity and diversify their portfolios.
These developments not only support financial stability but also signal a healthier and more sustainable insurance industry.
The rise in total assets is also driven by the sector’s aggressive expansion strategy, supported by technology adoption and innovation. The insurance industry has experienced a consistent upward trend in recent years, reinforcing its role in Nigeria’s broader financial ecosystem.
Liabilities are also on the rise
While assets hit record highs, the sector’s liabilities also peaked in Q2 2025, reaching N4.619 trillion.
Quarter-on-quarter, liabilities deepened by N454 billion, representing a 10.9% increase compared to Q1’s N4.165 trillion.
Year-on-year, liabilities rose by N932 billion, a 25.3% increase compared to Q2 2024.
What you should know
- The sector 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 said 18 insurance companies have indicated their readiness to undergo capital verification, a key requirement in the ongoing recapitalisation exercise for the Nigerian insurance sector.
- Speaking at the EY Insurance Summit 2025, NAICOM’s Chief Executive Officer, Olusegun Omosehin, described the industry’s response in the recapitalisation process as encouraging.
He explained that the Commission has established a capital verification framework to ensure transparency and credibility.
NAICOM said only firms that meet the minimum capital requirements by the deadline will retain their operating licences.
Roadmap for insurance firms to meet recapitalisation requirements:
- September 30, 2025: Deadline for submission of recapitalisation plans.
- November 2025 – June 2026: Period for capital verification exercises.
- July 30, 2026: Final compliance deadline.
