Best’s News & Research Service - October 24, 2025 08:34 AM (EDT)
Best’s Market Segment Report: Recent Government Reforms Could Feed Through to Improved Profitability, Balance Sheet Metrics for Nigeria’s Insurers
- October 24, 2025 08:34 AM (EDT)
//BestWire// - Nigeria’s substantial oil and gas reserves, its young and growing population and its position among Africa’s largest economies highlight the significant growth potential of its insurance sector. Nevertheless, insurance penetration is low compared with peers in the west African region and across the broader continent, according to a new report from AM Best.
In its Best’s Market Segment Report, “Nigeria Insurance – A Market with Significant Potential”, AM Best notes that Nigeria’s historical inability to deliver on its potential can be attributed to a range of factors, including the low purchasing power of the country’s population, the sporadic enforcement of mandatory retail insurance lines and the negative cultural perception of insurance. In addition, the quality of insurers’ capital has been deteriorating over time, reflecting the impact of tough economic conditions.
Fleur Ngassa, financial analyst, AM Best, and one of the report’s authors, said: “With the commercial sector somewhat saturated, companies are increasingly focusing on penetrating the retail sector. While these efforts should encourage premium growth and boost insurance penetration over the long run, the industry remains reliant on the support of the government and regulatory bodies to enforce and promote the benefits of insurance products.”
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=359272.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.