The Finance and Insurance sector in Nigeria recorded a strong 16.13% year-on-year growth in the second quarter of 2025, according to the National Bureau of Statistics (NBS). The sector’s contribution to real GDP rose to 3.60% from 3.23% in the previous comparable quarter, highlighting the growing impact of financial services on the country’s economy.

While the sector groups banking and insurance together, NBS data shows that financial institutions account for about 87.97% of sector output, with insurance contributing 12.03%.

Economic analysts urge cautious optimism, noting that much of the growth is driven by banking activity rather than insurance. Mr. Tilewa Adebajo, CEO of CFG Advisory, described the performance as a positive step, but emphasized the need for sustained 8–10% annual growth to significantly uplift the middle class.

Observers in the insurance subsector point out that while the recent growth may indicate rising demand for financial services, deeper market penetration, improved products, and stronger regulatory follow-up are needed for the sector to fully capitalize on these gains.

The robust performance of the broader financial sector provides a favorable environment for insurers, as increased financial activity typically boosts demand for risk-management products and investments. Industry insiders stress that strategic innovation, enhanced digital transformation, and improved transparency are crucial for translating macroeconomic momentum into tangible growth for the insurance industry.