The Business NG - February 10, 2025

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Motorists Resist Third-Party Insurance Enforcement as Economic Hardship Bites

One week into the Federal Government’s enforcement of third-party vehicle insurance, Nigerian motorists are pushing back, citing economic hardship, distrust in the system, and confusion over policy requirements.

In Lagos, Akwa Ibom, and Edo, police and road safety officials have intensified crackdowns, threatening defaulters with fines of up to ₦250,000. However, compliance remains low, especially in the Southeast, where authorities continue urging motorists to renew their policies.

A major sticking point is the sharp rise in premium costs. In 2022, the National Insurance Commission (NAICOM) increased third-party insurance fees from ₦5,000 to ₦15,000—a 200% hike many vehicle owners say is unaffordable given the country’s worsening economic conditions.

“Nigerians are already struggling with food prices, fuel costs, and rent. Now they’re being forced to pay three times more for insurance they don’t even trust,” lamented a Lagos-based commercial driver.

With resistance growing, the question remains: will stricter enforcement push compliance, or will authorities have to reconsider their approach?