Nigeria’s Roads & The Cost Of Driving Uninsured
Weak Enforcement and a Silent Breakdown on Nigeria’s Roads
EVERY day, Nigeria’s roads carry millions of vehicles navigating crumbling infrastructure, reckless driving and weak traffic control. Hidden beneath this daily bustle is a largely ignored crisis: the majority of vehicles on Nigerian roads operate without valid motor insurance, in direct violation of the law and with far-reaching consequences for individuals and society.
Despite road traffic crashes ranking among the leading causes of death and injury nationwide, insurance—meant to cushion victims and drivers from financial ruin—remains poorly understood, weakly enforced and widely bypassed. The result is a road transport system where accident victims often fend for themselves, families are plunged into debt, and hospitals absorb avoidable losses.
What the Law Requires
Nigeria’s insurance laws are unambiguous. Section 68 of the Insurance Act 2003 mandates that all vehicles on public roads carry, at minimum, Third-Party Motor Insurance. This policy is intended to compensate victims for death, bodily injury or property damage caused by an insured vehicle.
Defaulters face penalties of up to ₦250,000 in fines, imprisonment for as long as one year, or both. Law enforcement agencies, including the Nigeria Police Force and the Federal Road Safety Corps (FRSC), are legally empowered to demand proof of valid insurance during routine checks.
In February 2025, the police, working with the National Insurance Commission (NAICOM), launched a renewed nationwide enforcement campaign. Authorities insisted the initiative was designed to protect road users rather than generate revenue. Yet months later, compliance remains disturbingly low.
The Numbers Tell a Grim Story
Nigeria is estimated to have between 12 and 14 million registered vehicles. However, industry data suggests that only about 3 to 3.5 million of these have valid motor insurance. This means more than 70 per cent of vehicles are either uninsured or operating with fake policies.
For road users, this translates to a dangerous reality: in any given traffic encounter, the odds are high that the other vehicle is uninsured. Both the FRSC and the Nigerian Insurers Association (NIA) have repeatedly warned that this gap undermines road safety and post-crash accountability.
Investigations reveal that forged and expired insurance documents are widely sold by roadside vendors, feeding a parallel market sustained by weak enforcement.
Insurance as “Just Paper”
Among many motorists, especially commercial drivers, insurance is viewed as a document meant to satisfy police checkpoints rather than a tool for protection. A Lagos-based commercial driver, Ahmed Ganiyu, admitted that few drivers consider insurance relevant unless enforcement intensifies.
“If police are checking, people rush to get papers. After that, nobody talks about it,” he said.
Such attitudes are driven by low earnings, daily survival pressures and limited understanding of insurance benefits.
Others, however, tell a different story. Civil servant Folake Adeniyi said her family’s experience reshaped her thinking after a crash left her brother paying over ₦1 million in repair costs out of pocket.
“That was when I realised insurance is not optional,” she said.
What Third-Party Insurance Really Covers
Contrary to common misconceptions, compulsory third-party insurance offers significant protection. NAICOM recently increased the compensation limit for property damage to ₦3 million—an update many motorists are unaware of.
Beyond financial compensation, insurance reduces post-accident disputes, limits road rage, protects drivers from sudden poverty and eases pressure on courts and hospitals.
Why Compliance Remains Weak
Economic hardship remains a major barrier. With fuel prices rising and vehicle maintenance costs soaring, even the regulated annual third-party premium of about ₦15,000 is seen by some motorists as burdensome.
The availability of cheap fake certificates further discourages compliance, while inconsistent enforcement emboldens offenders.
The Hidden Human Cost
When uninsured vehicles are involved in accidents, victims bear medical bills, repair costs and long-term disability expenses alone. Families and public hospitals absorb the burden, deepening poverty and public mistrust.
NAICOM officials warn that until enforcement becomes consistent and awareness improves, the crisis will persist.
A Safety Net Nigeria Cannot Ignore
Motor insurance is not mere paperwork. It is a legal obligation and a social safeguard. Until attitudes change and enforcement is sustained, Nigeria’s roads will remain not only dangerous—but deeply unfair.
