With just days to the February 1 deadline, vehicle owners across Nigeria are rushing to obtain valid third-party motor insurance to avoid penalties as authorities prepare to enforce compliance. The National Insurance Commission (NAICOM), in collaboration with the Nigeria Police Force (NPF), has warned that motorists without valid insurance will face heavy fines, vehicle impoundment, or even jail time.
A visit by BusinessNG to the Vehicle Inspection Office (VIO) in Lagos on Thursday revealed a surge in vehicle owners attempting to regularize their documents before the enforcement begins. Long queues of motorists were seen at licensing offices, many seeking to renew expired policies or obtain valid third-party insurance for the first time.
According to NAICOM regulations and Section 68 of the Insurance Act, 2003, third-party motor insurance is mandatory for all vehicle owners. However, official records indicate that only 30% of Nigeria’s 12 million registered vehicles have valid third-party insurance, leaving about 70% of motorists non-compliant.
Authorities have emphasized that strict enforcement will commence on February 1, with police officers inspecting vehicles for compliance. Those found without valid insurance could face fines of up to ₦250,000, a one-year jail term, or the impoundment of their vehicles.
Speaking to BusinessNG, vehicle owner Chinedu Obiora, who was seen processing his documents at the VIO office in Ikeja, said he had ignored insurance in the past but didn’t want to take risks with the new enforcement drive.
“Honestly, I never paid much attention to motor insurance because I thought it wasn’t necessary. But with this new crackdown, I don’t want to be stranded on the road or lose my car to the authorities. The cost of compliance is much lower than the penalty,” he said.
Similarly, another motorist, Hauwa Suleiman, who was renewing her expired policy, noted that many of her friends had also rushed to get insurance before the deadline.
“We’ve been hearing stories of how serious the authorities are this time. I don’t want to take any chances. The process is simple, and the ₦15,000 annual cost is much better than the stress of dealing with law enforcement,” she explained.
The third-party motor insurance policy, which costs ₦15,000 per year, provides coverage of up to ₦3 million for damages, injuries, or fatalities involving third parties. The policy is available from licensed insurance providers, including Leadway Assurance, AIICO Insurance, and Mutual Benefits Assurance.
To obtain valid insurance, motorists are advised to visit licensed insurance providers, where they can complete the process in under five minutes. Some insurers, like Leadway Assurance, even offer a fully digital process where policies can be secured online by entering a vehicle registration number and a valid ID.
Insurance industry experts believe the enforcement drive will increase compliance and accountability on Nigerian roads. According to a senior NAICOM official, the government’s goal is not just to penalize motorists but to create a culture of responsibility where road users understand the importance of financial protection in case of accidents.
With the deadline fast approaching, vehicle owners still without insurance are urged to act quickly. The message from authorities is clear: get insured now or face the consequences
