9m Motorists Drive On Nigerian Roads With out Insurance coverage Papers

As most Nigerians battle {economic} hardship, resulting in low disposable revenue, no fewer than 9 million motorists drive their autos with out legitimate insurance coverage papers on Nigerian roads, LEADERSHIP can completely reveal.

That is whilst some motorists nationwide at the moment are decreasing their car insurance coverage protection as {economic} hardship bites tougher.

Nevertheless, low motor insurance coverage subscriptions have been an age-long concern regardless of elevated third-party motor insurance coverage enforcement by the police, which began on February 1, 2025, throughout the nation.

Although some uninsured motorists had been apprehended and penalised on the preliminary stage of this enforcement, months later, the efforts appear to have slowed down, as motorists proceed to violate street use legal guidelines, which embody insurance coverage, unabated.

Information from the Federal Street Security Corps (FRSC) and the Nigerian Insurers Affiliation (NIA) reveals that over 12 million autos are plying the nation’s roads, and with 9 million uninsured, there are a paltry 3.2 million motorists with legitimate insurance coverage cowl.

Additionally, knowledge from the Nigerian Insurers Affiliation (NIA), launched on Tuesday, revealed that, as of June 2025, solely 3.289 million motorists had lively insurance coverage insurance policies registered via the Nigerian Insurance coverage Trade Database (NIID) and the Nigerian Insurance coverage Trade Portal (NIIP).

The June 2025 knowledge was about 81,000 greater than the three.208 million motorists with legitimate insurance coverage papers as of June 2024. Additional breakdown of the info reveals that, of the three.289 million lively insurance policies, 3.167 million had been registered via NIID, whereas 122,565 had been registered via NIIP as of June this 12 months.
Nevertheless, of the three.208 million autos with legitimate insurance coverage papers as of June 2025, 3.203 million insurance policies had been registered via NIID, whereas 4,943 had been registered via NIIP.

To this finish, the LEADERSHIP investigation reveals that a few of these 9 million uninsured autos parade pretend motor insurance coverage papers, whereas some didn’t have any insurance coverage cowl, and some who had real insurance coverage papers earlier than did not renew when their earlier Motor insurance coverage cowl expired.

The FRSC Act calls for that any vehicle on Nigerian roads have at the very least a third-party motor insurance coverage coverage or complete insurance coverage protection for about one per cent of its worth.

Third-party Automobile Insurance coverage has a hard and fast value of N15,000, which was elevated from N5,000 in 2023 to account for inflation and the growing value of car spare elements.

Investigation revealed that almost all drivers go for pretend insurance coverage as a result of it’s low-cost and to keep away from the wrath of regulation enforcement brokers. They’ve little or no data of the advantages of shopping for unique insurance coverage cowl. Different uninsured motorists, it was learnt, choose to bribe regulation enforcement brokers in case they meet them on the roads.

In the meantime, some motorists are decreasing their car insurance coverage protection, particularly with inflation hitting double digits, low disposable revenue, and excessive value of residing. Nigerians have been slicing down on their bills, together with insurance coverage budgets, in the previous couple of years.

Investigation revealed that some car homeowners who had been insuring their autos comprehensively are now not doing so, opting as an alternative for hybrid or third-party motor insurance coverage insurance policies, which have cheaper premiums.

That is whilst insurance coverage firms have now developed a brand new motor coverage often called a hybrid for many who can not afford complete protection.

A hybrid motor insurance coverage coverage, which has an annual premium between N25,000 and N30,000, combines the options of complete and third-party motor insurance coverage insurance policies. On this case, the car’s proprietor has entry to protection of about N200 000, not like the third-party coverage, which isn’t useful to the service.

Recall that the premium for complete protection is normally 5 to 10 per cent of a car’s valuation, whereas third-party protection prices N15,000.

Though the business recorded over N1.5 trillion in gross premium revenue in its 2024 {financial} 12 months, some recommend that this could have been extra had the established order remained.

Equally, the LEADERSHIP investigation revealed that the car-pooling methodology, which is now efficient in formal setups and households, had made some gross sales from their fleet of vehicles, beforehand comprehensively insured, thereby resulting in income loss from that class of insurance coverage.

Talking on this improvement at a discussion board in Lagos, the chairman of the NIA, Kunle Ahmed, urged uninsured Nigerians, together with motorists, to safe their belongings and lives via the instrumentality of Insurance coverage as the advantages far outweigh the premium paid.

He disclosed {that a} third-party motor insurance coverage coverage has a N3 million claims attachment ought to a mishap occur to a third-party car via one’s fault. He mentioned that as an alternative of repairing these accidented autos from one’s pocket, insurance coverage firms would choose up the invoice and pay.

He frowned on motorists’ low insurance coverage adoption and urged Nigerians to take car insurance coverage critically, particularly right now when there are growing circumstances of street accidents throughout the nation.

Ahmed, who can be the managing director/CEO of AXA Mansard Insurance coverage Plc, nevertheless, disclosed that, whereas some who had been beforehand on complete insurance policies switched to hybrid or third-party insurance policies because of {economic} hardship, this nonetheless doesn’t have a critical impact on firms’ backside strains. The premium enhance, he mentioned, saved operators in enterprise, making certain that dangers had been adequately priced.

Equally, the managing director/CEO, Common Insurance coverage Plc, Dr. Jeff Duru, confirmed a drop in quantity of complete insurance coverage coverage, stating that those that weren’t insuring comprehensively went for the hybrid merchandise.

He assured that insurance coverage operators will proceed to pay real claims and evolve merchandise because the market calls for. The Hybrid motor insurance coverage coverage, he acknowledged, is a type of improvements that was a response to policyholder demand. He assured that his underwriting agency and different insurers are ever able to pay real claims to policyholders who are suffering mishaps on their insured belongings and lives.

He assured motorists that the operators would proceed to pay real claims inside 24 to 48 hours after each doc had been submitted, urging the remaining 9 million car homeowners to insure their autos.