Auto
Government Loses N60b Yearly To Vehicle Insurance

By Dipo Olowookere
Nigeria’s insurance sector is estimated to be losing about N60 billion annually, as only 25 per cent of registered vehicles in the country carry genuine third party motor insurance policies, The Guardian exclusively learnt.
This is aside the billions of Naira also lost to the sector on comprehensive motor insurance, which requests that 10 per cent of the cost of a vehicle be paid as yearly premium.
Data obtained from the Nigerian Insurers Association (NIA) shows that only four million of the 16 million registered vehicles in the country have third party insurance cover. This leaves a balance of 12 million vehicles either uninsured or parading fake insurance papers.
Third Party Insurance is the least cover required by law. It comes at a fixed price of N5,000 for private and N7,500 for commercial vehicles, and covers damages caused by the insured vehicle to other road users including property in the event of an accident.
Section 38 of the National Insurance Act 2003, currently in use, states that Third Party Motor Insurance is required as part of the minimum amount of auto cover you must carry as a car owner. Penalties for non-compliance can include a fine of up to N250, 000 and or one-year imprisonment.
On the other hand, the comprehensive insurance covers the cost of damages to the insured vehicle as well as to other third party road users and property.
There are about 118 insurance and five reinsurance companies registered in Nigeria, which provide covers for the public.
Further investigation shows that most of the motorists flaunting insurance papers did not obtain them at the Vehicle licensing offices, a unit of the Vehicle Inspection Offices (VIO), even as there are touts who market the fake insurance covers especially to the commercial vehicles at the parks and garages.
The fake insurance covers are sold for between N300 to N1,000, supposedly issued by insurance firms that do not exist. Due to ignorance and lack of knowledge of the benefits of buying original insurance covers, most commercial drivers go for the fake insurance because it is cheap, to avoid the wrath of the law enforcement agents.
Other uninsured motorists, it was learnt, prefer to settle their way out either with law enforcement agents or when an accident occurs.
A Lagos driver, who identified himself as Segun, told The Guardian that he got his fake insurance cover from the old licensing office along GRA, Ikeja, Lagos, saying that is where he and most of his colleagues buy their vehicle insurance.
When asked the name of his insurer, he said: “The name on my insurance certificate is Pacific Insurance.” But there is no firm bearing such a name among the registered insurance companies.
Speaking on the incidence of fake insurance covers, the VIO Spokesperson, Lagos State, Gbolahan Toriola, insisted that the agency does not condone such illegal acts, adding that any of its personnel caught marketing and selling fake insurance is immediately penalised.
“So, if anybody has issues with a policy that he or she obtained in any of our licensing offices, he or she should go back to that office and identify the staff. In Lagos State, we don’t condone that, what we want is for people to obey the law. Any staff caught will face disciplinary action and will be dismissed,” he said.
To reduce the number of fake vehicle insurance on Nigerian roads, he said, the VIO has partnered with the NIA, to access its Nigerian Insurance Industry Database (NIID), adding that, through the database, motorists can confirm whether the insurance they obtained is a fake or not.
Through the NIID, he said, the number of genuine insurance among motorists has increased. “Before now, when you stop 100 vehicles, you hardly see 10 of them having genuine insurance certificates. But now, I can tell you that when you stop 20 vehicles, you can see 10 to 15 of them having genuine insurance because of our enforcement and enlightenment exercise, which we have done with NIA.”
Guardian
Auto
NRS Denies Introduction of New Vehicle Tax from July 1
By Modupe Gbadeyanka
The Nigeria Revenue Service (NRS) refuted reports making the rounds on social media that the federal government plans to introduce a new tax on vehicles from July 1, 2026.
Mr Dare Adekambi, who serves as the Special Adviser to the NRS Chairman, Mr Zach Adedeji, and spokesperson for the organisation, said in a statement that the government was not planning to introduce the vehicle tax as claimed.
He described a viral infographic purporting the policy as false and misleading, urging members of the public to disregard it.
Mr Adekambi advised citizens to only rely on information from the NRS, urging them to follow the company its official handles on all social media platforms and its website for accurate information about tax and its activities.
In the infographic, motorists were directed to pay an unspecified vehicle tax rate online or at approved banks and agencies. The website listed as NRS’s was the old one, http://www.firs.gov.ng and not the new http://www.nrs.gov.ng created after it was rebranded.
“The NRS wishes to state categorically that the information did not emanate from the service or any government agency.
“Citizens are, therefore, advised to disregard the fabricated messages designed to mislead the public and instead rely on official government channels for information on government policies,” Mr Adekambi said in the statement.
Auto
Court Restrains Police, FRSC from Imposing Car Insurance Fines Without Court Order
By Adedapo Adesanya
The Federal High Court in Abuja has restrained the Nigeria Police Force and the Federal Road Safety Corps (FRSC) from imposing fines on motorists for third-party motor vehicle insurance violations without a court order.
The ruling followed a suit marked FHC/ABJ/CS/291/2025 filed by activist-lawyer, Mr Deji Adeyanju, against the Inspector-General of Police, the Attorney-General of the Federation and the FRSC.
Delivering judgment on Friday, Justice Hauwa Yilwa held that while both the police and the FRSC have the power to enforce compliance with third-party motor insurance, they lack the legal authority to impose fines on alleged offenders.
The suit was initiated through an originating summons, brought pursuant to Section 17 of the Motor Vehicles (Third Party Insurance) Act, 1950, Sections 68(3) and (4) of the Insurance Act, 2003, as well as provisions of the Federal Road Safety Commission (Establishment) Act, 2007.
Mr Adeyanju had asked the court to determine whether the police could enforce third-party insurance, impose fines without judicial backing, and whether such enforcement during routine stop-and-search operations violated constitutional rights.
He also sought a declaration on whether the power to enforce third-party motor insurance lies exclusively with the FRSC.
In addition to the declaratory relief, the applicant requested orders of perpetual injunction restraining the police from enforcing third-party insurance and from imposing fines without judicial backing.
He further urged the court to hold the Attorney-General of the Federation accountable for providing legal guidance on the scope of police powers under the relevant statutes.
However, in its judgment, the court drew a distinction between enforcement and sanctioning powers.
Counsel to the applicant, Mr Marvin Omorogbe, said the court upheld the authority of both the police and the FRSC to ensure compliance with motor vehicle insurance laws, but firmly ruled against the imposition of fines by either agency.
According to him, the court held that “the police and the road safety may enforce” compliance but “outrightly lack the powers to impose fines on third parties or vehicle owners” in the course of such enforcement.
“The court went further to restrain the IGP, the Police Force and all their officers, including the FRSC, from imposing fines on motor vehicle users or Nigerian citizens,” Mr Omorogbe said.
Reacting to the judgment, Mr Adeyanju expressed satisfaction, noting that the central objective of the suit had been achieved.
“The sole reason why we came to court is that we wanted the court to make a positive declaration that the police and the road safety do not have the right to impose fines on any Nigerian over motor vehicle insurance. And we have succeeded,” he said.
He argued that the ruling would curb what he described as a pattern of extortion by enforcement agencies and restore confidence among motorists.
Mr Adeyanju added that although the court declined to grant all the reliefs sought—particularly the request to strip the police entirely of enforcement powers—it nonetheless made a significant pronouncement on the limits of those powers.
He also urged Nigerians to take advantage of the judgment to assert their rights and seek legal remedies where necessary.
On the other hand, counsel to the defendants, Mr Victor Okoye, said the judgment was only partly favourable to the police and signalled plans to challenge it at the Court of Appeal.
Mr Okoye disclosed that the defence had raised a preliminary objection questioning the jurisdiction of the court to entertain the suit, arguing that the originating summons was incompetent and unsuitable for resolving contentious issues.
He relied on appellate authorities to stress that jurisdiction is fundamental to adjudication and must be determined before any substantive issues.
Despite this, he noted, the court proceeded to deliver judgment.
Auto
Pamtech Issues Public Disclaimer on Popular Auto Influencer Juliet Ibekwe
By Modupe Gbadeyanka
A public disclaimer has been issued on two former representatives of Pamtech Group, Mr Somiari Lucky and Ms Juliet Ibekwe, who is a popular auto influencer.
In the notice signed by the chief executive of Pamtech, Mr Chidomere Ndubuisi, on Tuesday, members of the public were informed that the duo no longer work with the organisation.
Mr Ndubuisi, who did not disclose why he disengaged the duo, however, emphasised that Mr Lucky and Ms Ibekwe are “not authorised to act on behalf of, represent, negotiate, or enter into any business dealings in the name of Pamtech Media Ltd or Pamtech Group.”
Ms Ibekwe rose to fame by creating content on how to make vehicles work efficiently. She became a notable auto content creator in Nigeria and garnered more fans for her car care tips.
In the disclaimer today, Pamtech warned “the general public, our valued clients, partners, and stakeholders” that doing business with Ms Ibekwe and Mr Lucky is “at their own discretion and risk, and such engagements do not involve Pamtech Group in any capacity.”
“Any business transactions, agreements, or engagements entered into with the above-mentioned individuals are strictly personal to them; Pamtech Group shall not be held liable or responsible for any commitments, representations, or obligations made by them after their exit from the company,” another part of the notice stressed.
The Owerri, Imo State-based firm further noted that, “Any use of the Pamtech name, brand, platform, or reputation by them without written authorisation is unauthorised and not recognised by the company.”
The company urged its clients, partners, and members of the public to verify all engagements directly with Pamtech Group official channels, and also ensure that all payments and communications are made only through verified company accounts and representatives.”
Pamtech expressed its commitment to delivering excellence, integrity, and professionalism across all its services in media, automobile, and business solutions.
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