….Just 3% of Nigerians Are Insured:
y NIyi JACOBS
Despite its economic potential, Nigeria’s insurance sector continues to lag, with fewer than 3% of the population insured—far below emerging market averages. This leaves millions exposed to financial shocks and economic instability.
A recent study by consulting firm VIISAUS highlights persistent barriers to insurance adoption in Lagos, the country’s financial capital. The findings reflect broader national trends. According to the report, 38% of Lagos residents see no need for insurance, prioritising daily survival over long-term protection. Cost concerns (21%) and distrust in insurers (19%) further deter uptake, while limited awareness (17%) compounds the problem.
Although Lagos boasts greater economic activity, traditional mindsets, poor claims experiences, and lack of product knowledge persist. “Insurance is still viewed as a luxury,” the report notes, especially where cultural beliefs and income volatility make long-term planning difficult.
To address this, VIISAUS recommends reforms focused on consumer education, affordable products, and greater transparency in policy design and claims processing. Digital platforms and tailored engagement strategies, they argue, can boost access and trust.
The Nigerian insurance market remains underexploited but full of promise. If stakeholders can address affordability, awareness, and trust deficits, insurance could evolve from a luxury to a financial lifeline—safeguarding millions from avoidable hardship
