Heightened terrorist attacks in Nigeria have prompted calls for federal government intervention to support the insurance sector in providing terrorism risk coverage. The country has paid over $1.5 billion in War Risk Insurance (WRI) premiums to foreign insurers, including Lloyd's of London, over a three-year period due to insecurity from piracy and militancy. With Boko Haram's insurgency causing more than 12,000 deaths since 2012, terrorism has shifted from a perceived threat to a recurring reality. Insurers initially regarded terrorism as uninsurable, but rising frequency has forced reconsideration, leading to demands for collaboration with the federal government. Globally, events like the 9/11 attacks in the US, the 2005 London bombings, and the 2008 Mumbai attacks have led to government-backed insurance schemes, such as the US Terrorism Risk Insurance Programme Reauthorisation (TRIPRA), which provides a federal reinsurance backstop. Under TRIPRA, federal compensation begins only after industry losses exceed $200 million. In Nigeria, however, no such framework exists despite growing exposure. Recent global incidents, including an armed assault at Bondi Beach, Sydney in 2025 and violence in Puerto Vallarta, Mexico in 2026, underscore the evolving nature of terrorism. Insurers warn that simultaneous claims across property, aviation, business interruption, and cyber lines could strain capacity. Cyber terrorism is also increasing pressure on insurers to adapt quickly.
The federal government has not established a terrorism insurance backstop despite Nigeria paying $1.5 billion to foreign insurers and recording over 12,000 deaths from Boko Haram attacks since 2012. Nigerian businesses and workers remain exposed to financial collapse after attacks, with no local safety net while foreign markets benefit from Nigerian premiums. The same risks that triggered US government intervention post-9/11 are already entrenched in Nigeria, yet no equivalent policy exists. This delay leaves the economy vulnerable to systemic shock from a single large-scale event.
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