Nigeria's Insurance Sector Faces Trust Issues Despite Recapitalisation

Nigeria's insurance industry has faced challenges in expanding its contribution to the economy, remaining one of the smallest sectors in terms of Gross Domestic Product (GDP). According to data from the National Bureau of Statistics (NBS) analyzed by Nairametrics, the finance and insurance sector contributed 3.37% to GDP in Q2 2026, with the insurance subsector contributing less than 1%.

Despite raising N700 billion through a recent recapitalisation exercise, Mary Adeyanju, the Managing Director/Chief Executive Officer of Consolidated Hallmark Insurance (C.H.I), identifies trust as a significant issue that cannot be resolved by financial means alone. Adeyanju notes that Nigerians often view insurance as unnecessary and emphasizes the need to change this perception.

She highlights efforts to develop insurance products tailored for individuals and small and medium-sized enterprises (SMEs) to demonstrate the value of insurance, particularly for those who may struggle to recover from losses.