General Insurance Industry Contributes 14.4% More to Nigeria’s GDP in 2024

The Nigerian general insurance industry contributed N349.01 billion to the nation’s economy in 2024, marking a 14.4% year-on-year increase from N305.02 billion in 2023. Experts attribute this growth to a rising awareness of insurance products and increased interest in general insurance services. The fourth-quarter GDP report for 2024 highlights a significant 17.1% rise in the sector’s contribution, bringing it to N75.5 billion from N64.5 billion in the same period of 2023.

Throughout 2024, the insurance industry showed steady growth across each quarter, with notable increases in the first, second, and third quarters. In Q1’24, it grew to N97.5 billion, up from N78.3 billion in Q1’23. By Q2’24, the figure rose to N97.5 billion from N86.4 billion, and in Q3’24, the sector contributed N91.3 billion, up from N76.2 billion in Q3’23. The consistent quarterly growth underscores the expanding role of insurance in Nigeria’s economy.

Mr. Edwin Igbiti, the immediate past President of the Chartered Insurance Institute of Nigeria (CIIN), emphasized the critical role of increased insurance awareness and energy insurance in driving growth. While acknowledging the industry’s potential for further growth due to low penetration rates, Igbiti highlighted the positive shift towards a more insurance-conscious public. He pointed out that the growing interest in energy insurance has helped boost the general insurance business significantly.

Mrs. Bola Odukale, Director General of the Nigerian Insurers Association (NIA), stressed the need for ongoing efforts to improve the public’s understanding of insurance. She noted that negative perceptions about insurance are still prevalent, with many Nigerians lacking knowledge about its benefits. Odukale called for continuous engagement and educational campaigns to raise awareness, drawing comparisons to the well-established understanding of banking services.

Source: vanguard