Nigeria’s financial and insurance sector grew by 14.54 per cent in 2025, its fastest growth in recent years, driven by recapitalisation, stronger balance sheets and renewed regulatory oversight that enhanced industry capacity.

This was revealed in the latest gross domestic product (GDP) figures released by the National Bureau of Statistics (NBS) showed that the sector’s contribution to real GDP rose to 2.97 per cent in 2025, up from 2.69 per cent recorded in the previous year, reflecting sustained expansion in both financial institutions and insurance services.

In the fourth quarter of 2025, the sector grew by 8.3 per cent year-on-year in real terms, while its share of real GDP increased to 2.56 per cent, compared with 2.46 per cent in the corresponding period of 2024.

Financial institutions remained the dominant driver, accounting for 90.43 per cent of the sector’s output, while the insurance subsector contributed 9.57 per cent, though insurance recorded faster growth in nominal terms.

Industry stakeholders said the improved performance reflects the positive impact of recapitalisation reforms, stronger balance sheets, and renewed efforts to reposition insurance as a critical pillar of financial stability and economic protection.

Speaking on the development, Managing Director, Mutual Benefits Assurance, Olufemi Asenuga, said the growth trajectory demonstrated increasing confidence in the insurance sector and validated ongoing regulatory reforms aimed at strengthening operators’ financial capacity.