Development channels for the Nigerian insurance industry

The development of insurance is one of the priority objectives of the Nigerian government. An agreement has been concluded with the National Insurance Commission (NAICOM), a partnership aiming at introducing some mandatory guarantees in the 36 federal states of the country. A pilot project will initially be introduced in four states (Lagos, Ogun, Gombe and Kaduna) before going nationwide.

Nigerian authorities are also banking on the development of takaful insurance and microinsurance, measures that are likely to significantly increase insurance penetration rate, especially in rural areas.

Nigerian insurance market turnover is estimated at 380 billion NGN (1.25 billion USD) in 2016. The country plans on reaching 1000 billion NGN (2.8 billion USD) by 2020.