Business
Mutual Benefits Assurance’s annual profit jumps 45% amid boost in insurance revenue
Mutual Benefits Assurance reported on Friday a 45 per cent increase in net profit for the 2025 financial year, receiving a major boost from its insurance business.
Shares in the insurer had gone up by 9.5 per cent on Lagos’ Customs Street as of 10:32 West Africa Time, following the news.
Insurance service result leapt 718.9 per cent to N8.8 billion, according to its audited financials, easing the blow that a slide in net investment income would have had dealt on earnings.
The net investment income of the underwriter dropped by 11.1 per cent in the period under review after incurring N659.7 million in foreign exchange loss in contrast to a gain of N5.3 billion posted a year earlier.
Insurance revenue climbed by 19.6 per cent to N80 billion, with Nigeria contributing more than three-fourths of that sum, while Niger and Liberia – other markets where the company operates – accounted for the rest.
The results also showed that motor insurance remains the biggest contributor to insurance revenue pool of the insurer, whose underwriting operations span oil & gas, aviation, agriculture, marine and life among others. Revenue from motor insurance stood N26.2 billion, up from N17.9 billion a year earlier.
Apart from assurance business, the company has operations in real estate, microfinance as well as oil & gas exploration and production.
One of the key highlights of the reasonably strong performance was the N9.2 billion recorded as insurance service result before reinsurance contracts held, which compares to a negative position of N1.2 billion reported in 2024, when soaring insurance service costs wiped out insurance revenue.
READ ALSO: CBN retains interest rate at 26.5%
Mutual Benefits Assurance has proposed a dividend per share of N0.04 for the review period, translating into a potential payout of N802.5 million, two times what it paid shareholders for 2024.
Strengthening profit, the company cut back other employee benefit expenses by 7.8 per cent and other operating expenses by 40.5 per cent.
Profit before income tax rose by 47.6 per cent to N17.4 billion, while profit after tax advanced to N16.4 billion.
Total assets expanded by 19.8 per cent to N176.2 billion, driven by an increase in financial assets at amortised cost.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has applauded the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that will enhance Nigeria’s competitiveness for deep offshore investment.
President Bola Tinubu approved the order on Tuesday as part of efforts to attract large-scale investments into Nigeria’s deep offshore oil and gas sector.
In a statement issued on Thursday, NNPC said the new order establishes a transparent, predictable, and globally competitive fiscal framework for qualifying greenfield deep-offshore developments.
The company said the framework would provide the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs) and maximise value from Nigeria’s offshore resources.
The order is expected to support Nigeria’s ambition of increasing crude oil production to 3 million barrels per day (MMbopd) by 2030.
Framework to unlock offshore investments
President Tinubu, while announcing the approval on Tuesday, said the new incentive framework could unlock up to $50 billion in deep offshore investments, beginning with the approximately $10 billion Bonga South West project.
“I have signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, creating a clear and predictable framework capable of unlocking up to $50 billion in deep offshore investment, beginning with the approximately $10 billion Bonga South West project,” Mr Tinubu said.
The policy aims to make previously stalled offshore projects commercially viable by providing investors with tax incentives and greater certainty regarding the fiscal terms governing their investments.
According to NNPC, the framework is expected to reinforce Nigeria’s position as an attractive destination for deep-offshore oil and gas development and unlock more than $50 billion in new investment.
It said the expected investments include major projects such as Bonga South West, Zabazaba and Owowo Deep Offshore developments.
Bonga South West, which was approved in March 2026, is expected to be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
‘Transformative reform’
The Group Chief Executive Officer of NNPC Ltd., Bashir Ojulari, described the order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Mr Ojulari said.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” he added.
Mr Ojulari said the order aligns with NNPC’s strategy of protecting existing production, accelerating near-term growth and attracting new investments into high-value assets.
“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” he said.
He said the reform strengthens the company’s confidence in achieving its 3 MMbopd production ambition while creating greater value for its shareholders and the Nigerian economy.
Mr Ojulari said recent reforms across Nigeria’s petroleum sector had already stimulated more than $34 billion in new investment commitments.
READ ALSO: NNPC posts ₦535 billion profit, records 1.72 million barrels daily oil output in June
He said the Deep Offshore Incentives Order would build on the momentum by enabling timely FIDs on strategic offshore developments.
The NNPC chief executive commended President Tinubu for his commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through a series of presidential executive orders.
The company said the latest reform reinforces its commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
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