The Nigerian Police Force, under the directive of Inspector-General Kayode Egbetokun, has initiated the mandatory enforcement of third-party motor vehicle insurance in Lagos and two other states. This move aims to ensure that all vehicle owners possess at least a valid third-party insurance policy, a critical step towards enhancing road safety and promoting financial accountability among motorists.

Key Requirements and Penalties

The enforcement mandates that vehicle owners in Lagos and the affected states must have valid third-party insurance. Failure to comply will result in strict penalties, including fines, vehicle seizure, or impoundment, and potential prosecution. To ensure effective implementation, the police have established a dedicated enforcement team to address the challenge of uninsured vehicles on the roads.

Objective and Benefits

The primary goal of this initiative is to ensure compliance with insurance regulations, thereby providing financial protection for vehicle owners and other road users in the event of accidents. By promoting accountability and responsibility among motorists, the policy seeks to reduce the financial burden of accidents and improve overall road safety. Additionally, this enforcement aligns with broader efforts to strengthen Nigeria’s insurance sector and increase insurance penetration across the country.

While Lagos is a key focus of this enforcement, Delta State has also been included, with the police command set to commence implementation on February 1, 2025. However, details about the third state affected by this directive remain unclear at this time.

A Long-Overdue Initiative

Naijamart.com  and its subsidiary, indeed motors.naijamart.com, have hailed this move as a long-overdue measure. The platform argues that it is both illogical and dangerous to allow vehicles—machines capable of causing significant harm and damage—to operate on public roads without at least third-party liability insurance. This enforcement is not only a matter of public safety but also a foundational pillar for economic growth.

President Bola Tinubu’s vision of growing Nigeria’s economy to a $1 trillion GDP requires such foundational measures. Interestingly, this proposal is not new. Over two decades ago, in 2008, Naijamart.com submitted a similar proposal to the Lagos State Government, then under Governor Babatunde Fashola, and the Nigerian Insurance Association. The proposal was championed by a respected elder statesman and prominent insurance executive, who also served as a Grand Patron of the prestigious Ikoyi Club 1938.

Key Principles of the 2008 Proposal

The 2008 proposal outlined a comprehensive framework for implementing third-party motor insurance enforcement. Key elements included:

1. Insurance Database: The Nigerian Insurance Association would build and maintain a centralized insurance database, with Naijamart.com facilitating its development.
2. Mobile Application: Naijamart.com proposed building a user-friendly app accessible via USSD codes and the internet.
3. Public and Police Access: The app would be available to both the police and the general public, enabling them to verify a vehicle’s insurance status using the license plate number as a search criterion.
4. Detection and Reporting: If a vehicle is found to be uninsured, the police would initiate standard operating procedures. Members of the public could also report uninsured vehicles to the police for action.
5. Fines and Penalties: The proposal recommended that fines for non-compliance should not exceed double the cost of third-party insurance (currently ₦15,000), capping the penalty at ₦30,000. An additional administrative fine of ₦15,000 would be paid to the member of the public who reported the offence. If a police officer detected the violation, the offender would pay ₦30,000 to the police office.
6. Anti-Corruption Measures: The proposal emphasized that minimal and commensurate fines would reduce the temptation for bribery, while adequate compensation for reporting offences would further discourage corrupt practices.

Naijamart.com  has urged the Nigerian Police Force and the respective state governments involved in this pilot scheme to consider the suggestions outlined in their 2008 proposal. The platform remains committed to supporting initiatives that promote safety, accountability, and economic growth in Nigeria.