Nigeria’s insurance sub-sector emerged as the primary growth engine of the financial services sector in the final quarter of 2025, recording a massive surge to 21.37 per cent.
According to the latest report from the National Bureau of Statistics, the insurance sub-sector recorded a real growth rate of 21.37 per cent in Q4 2025. This performance represents a dramatic acceleration compared to the 6.60 per cent growth recorded in the corresponding quarter of 2024. On an annual basis, the insurance industry’s real growth for the full year 2025 stood at 16.04 per cent, more than quadrupling the 3.42 per cent growth seen in 2024.
The NGGOSSIPS reports that Nigeria’s aggregate Real Gross Domestic Product grew 4.07 per cent year-on-year in Q4 2025, up from the 3.76 per cent recorded in the same period of 2024.
In nominal terms, reflecting current prices before adjusting for inflation, the insurance sub-sector grew 30.83 per cent during the quarter.
Despite its rapid expansion, insurance currently accounts for 9.57 per cent of the total Finance and Insurance sector in real terms, suggesting significant room for further penetration in the Nigerian market.
The larger financial institutions (banking) sub-sector, which accounts for 90.43 per cent of the Finance and Insurance sector, grew at a more measured pace of 7.08 per cent in real terms during the fourth quarter. While slower than the insurance spike, the sub-sector maintained strong momentum throughout the year, ending 2025 with an annual real growth rate of 14.36 per cent.
In nominal terms, financial institutions recorded a growth rate of 26.15 per cent in Q4 2025. Combined, the total Finance and Insurance sector grew 8.30 per cent in real terms during the quarter, contributing 2.56 per cent to the nation’s aggregate real GDP.
The report read, “Growth in this sector in real terms totalled 8.30 per cent, higher by 2.31 percentage points than the rate recorded in the 2024 fourth quarter and lower by 11.33 percentage points than the rate recorded in the preceding quarter. Quarter-on-quarter, growth in real terms stood at 8.37 per cent. Overall, growth stood at 14.54 per cent, higher than the 2.95 per cent recorded in 2024.
“The contribution of Finance and Insurance to real GDP totalled 2.56 per cent, higher than the contribution of 2.46 per cent recorded in the fourth quarter of 2024 by 0.10 percentage points and lower than 2.65 per cent recorded in Q3 2025 by 0.09 percentage points. In total, 2.97 per cent was contributed in 2025, higher than 2.69 per cent in 2024. ”.
Beyond financial services, several other sectors showed high-growth trajectories that are critical for business planning and investment:
The transportation and storage sector was a standout performer, recording a real growth rate of 21.25 per cent in Q4 2025. This was driven largely by road transport, which surged 23.86 per cent, and a rebound in air transport, which grew 15.17 per cent.
Information and communication, a vital sector for the modern economy, grew 7.55 per cent in real terms during the quarter. Telecommunications remained the dominant force here, growing 8.39 per cent and contributing 9.64 per cent to the total real GDP.
The real estate sector presented a striking contrast. While its real growth was a modest 3.43 per cent, its nominal growth exploded 57.44 per cent. This massive gap suggests significant price inflation and high transaction values within the property market. The oil and gas sector continued its recovery, with average daily production reaching 1.58 million barrels per day (mbpd) in Q4 2025. This resulted in a real growth rate of 6.79 per cent for the quarter.
Manufacturing and construction: Manufacturing grew by a slim 1.13 per cent in real terms, though the food, beverage and tobacco segment performed better at 2.25 per cent. Construction showed more robust health, growing 5.08 per cent during the quarter.
Overall, the services sector remains the backbone of the Nigerian economy, contributing 55.92 per cent to the aggregate GDP in the final quarter of 2025. The data indicates that while traditional sectors like agriculture (4.00 per cent growth) remain stable, the rapid professionalisation of the insurance and transport industries is creating new frontiers for economic expansion.
