The Nigerian fire insurance sector is recording significant growth, but the benefits are largely skewed in favor of corporate organisations and high networth individuals, leaving small businesses and low income earners largely unprotected.
Data from the National Insurance Commission (NAICOM) and insurance firms show fire insurance premium income rose from N68.1 billion in 2021 to N238.7 billion by 2024, with 2025 expected to reach nearly N350 billion. Premiums for fire insurance have consistently grown faster than other lines of business, with the first half of 2025 recording 57.2 percent growth compared to 47.5 percent for total premiums.
Industry experts, including Casmir Azubuike of Afriglobal Insurance Brokers and Ben Ujoatuonu, noted that corporate clients contribute about 75 to 80 percent of premium income and receive the majority of claims, while small business owners and market traders remain largely uninsured.
Former executive Rashidat Adebisi said the insurance system was designed to benefit corporates, leaving individuals and SMEs vulnerable. Many small business owners, including traders at Balogun and Idumota markets, reported low awareness of insurance and distrust in claims payouts.
Experts argue that government enforcement of compulsory insurance is critical to expanding coverage. The Nigerian Insurance Industry Reform Act provides a framework, but its effectiveness depends on enforcement and public awareness campaigns.
Operators stress that increased insurance literacy and government commitment are needed to ensure equitable access to fire insurance and mitigate losses from market fires and building collapses across Nigeria.
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