As of 2023, only about 25% of vehicles on Nigerian roads were insured, which translates to approximately three million vehicles out of 12 million registered.
The trend suggests a low rate of insurance coverage due to factors like inflation and increased premiums.
The Nigerian Police Force launched a nationwide enforcement initiative in February 2025 to improve compliance with third-party motor insurance.
In Nigeria, driving without valid insurance can result in several penalties:
Fines: Drivers may face fines ranging from N2,000 to N300,000 or more, depending on the location and circumstances. In Lagos State, the fine starts at N20,000 for a first offense.
Imprisonment: There is a potential sentence of up to one year in prison for driving without insurance123.
Licence Revocation: Driving licenses and vehicle licenses can be suspended or revoked.
Vehicle Seizure: Authorities may impound vehicles until proper insurance is proven and fines are paid.
