Statistics from the Federal Road Safety Corps (FRSC) and the Nigerian Insurance Association (NIA) indicate that only 25% of vehicles on the road in Nigeria were insured in 2023. This rate is expected to drop further in 2024.
The country's low motor insurance underwriting is attributable to a number of factors, including inflation, the removal of fuel subsidies, and the depreciation of the local currency. The difficult business environment and rising living costs have driven citizens to drop insurance from their list of priorities.
The tripling of the motor third-party liability premium from 5 000 NGN (3.1 USD) to 15 000 NGN (9.4 USD) in 2023 has also led to a decline in underwriting, despite it being compulsory in Nigeria.
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