Insurance Penetration: Nigeria Targets 3% GDP Share
Enterprises NGR has strongly advocated for a significant increase in insurance penetration in Nigeria, proposing a target of three per cent insurance premium income to the Gross Domestic Product (GDP). This call was made at a recent insurance sector consultative forum, highlighting the sector's current contribution of under one per cent to the national economy.
Aigboje Aig-Imoukhuede, Chairman of Enterprises NGR, conveyed this ambition during discussions at the 2026 insurance sector consultative forum, themed: “Driving collective advocacy for the transformation of Nigeria’s Insurance Industry.” He emphasised the need to elevate the relevance of insurance within the economy to a level far exceeding its current standing.
Boosting Economic Relevance
“The whole idea is to achieve a level of relevance of insurance in the economy that is higher than what it is today. Right now, we are under one percent penetration in terms of insurance to GDP ratio,” Aig-Imoukhuede stated. He elaborated on the potential impact: “Some countries are three percent, 11 percent, so if we grow from where we are today to three per cent, that is tripling the sector and if we go 11 per cent, that is 10 times growth and the effect on overall economy will be tremendous.”
Enterprises NGR is committed to fostering the sector's growth through effective collaboration with various stakeholders. The chairman noted that vibrant financial and professional services sectors are common characteristics of nations that have successfully transitioned from emerging to advanced economic status.
Catalyst for Investment and Growth
“It then becomes an anchor for investment internationally and mobilises investment domestically,” he explained. “The greatest source for growth for any economy is investment and the lever through that growth is achieved is through the financial and professional services sector, so we want to have a vibrant and professional service sector.”
He further clarified the organisation’s focus: “One of the professions and services across the world is insurance and that’s why we are focused on the insurance sub-sector at this time.”
Stakeholder Support for Reform
Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, commended Enterprises NGR’s dedication to boosting the sector. He stressed that collaboration is paramount for the effective implementation of the Nigeria Insurance Industry Reform Act.
“The essence of this gathering to me goes beyond putting the law in place but to now begin implement the piece of legislation in the law and that is the only way you can move the insurance industry forward,” Senator Abiru remarked. He added, “Implementation can best be achieved if we have cooperation and collaboration among all the players in the industry, and we have to thank Enterprises NGR for leading this advocacy.” Olusegun Ayo Omosehin, the Chief Executive Officer of the National Insurance Commission (NAICOM), also underscored the critical need for collaborative efforts to deepen insurance penetration. “There is no nation on this planet that can successfully transit to that level of growth without the resilience required by the insurance sector,” he concluded.