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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
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Passengers Lament as Uber, Bolt Drivers Strike in Lagos
By Dipo Olowookere
Rising operational costs and declining earnings have forced drivers of ride-haling platforms like Uber and Bolt to embark on a three-day warning strike in Lagos.
This situation has not gone down well with their customers in the metropolis, who have expressed frustration over the strike.
“Though I am not happy with the action of the drivers, I feel for them because they operate in a harsh environment,” a customer of Bolt, Mr Seyi Adeniji, said.
When Business Post checked the Uber app on Monday morning to book a ride from Egbeda to Megida Ayobo, both in the Alimosho Local Government Area of Lagos State, it was functional, but with fewer drivers available for pick-up, with prices ranging from N5,200 on Uber X to N7,400.
One of the drivers, who spoke with this newspaper but begged for anonymity, said efforts by them for improved packages have failed.
It was gathered that when nothing concrete came out from talks with operators of the platforms, drivers, under the aegis of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Lagos State Chapter, decided to begin a warning strike from March 16 to 18, 2026, to further press home their demands.
They want an immediate review of ride fares to reflect current economic conditions. They also seek a cut in commission charges by ride-hailing companies, and want the introduction of a guaranteed minimum trip fare.
The drivers have asked for insurance coverage, an end to unjust deactivation of driver accounts without proper investigation, and greater transparency in how fares and commissions are calculated.
In addition, they want improved safety protections for drivers through better rider-verification systems, emergency panic buttons, and faster response mechanisms in cases of security threats.
According to a statement from the spokesman of the organisation, Mr Steven Iwindoye, many drivers are struggling to remain financially viable due to increasing fuel prices, vehicle maintenance costs, inflation and other living expenses, while fare structures on ride-hailing platforms have remained largely unchanged.
“Drivers operating on platforms such as Uber, Bolt, inDrive and Lagride continue to face rising operational costs, including the high price of fuel, vehicle maintenance, inflation and daily living expenses.
“Unfortunately, the fare structures and policies of these companies have not been adjusted to reflect these economic realities,” the statement said.
It was stressed that many drivers now work extremely long hours yet still struggle to earn a sustainable income, clarifying that, “This strike is not intended to punish commuters but to demand fair treatment, economic sustainability and safety protections for the drivers who power the ride-hailing industry.”
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InDrive Fetes Abuja Drivers in Ramadan Shukran Campaign
InDrive, a leading global ride-hailing platform operating in nine African countries, is celebrating Ramadan season with a targeted driver appreciation programme in Abuja, tagged’Ramadan Shukran campaign’, with active Muslim drivers on the platform to receive curated food hampers and personalised thank-you cards.
The initiative, designed to strengthen the company’s relationship with its driver community at a time when many are working long hours while observing the fast, is not based on financial incentives or performance-based rewards but on practical support for the month and a direct expression of appreciation for the role drivers play in the platform’s daily operations.
Four Abuja-based Muslim content creators who understand the social and religious considerations of the period have been delivering 200 hampers across key districts in the city. The hampers, which contain everyday Ramadan essentials to support suhoor and iftar, including staple foods and beverages commonly consumed during the fasting period, come in warm-toned Ramadan packaging and include a handwritten-style card from Indrive with the message “Shukran,” which means thank you.
Each creator is assigned a specific coverage area to ensure broad reach and local relevance, with deliveries taking place around prayer times and fasting schedules, which are captured with the participating drivers’ consent. The campaign, serving as a broader positioning goal to publicly recognise drivers through creator-led storytelling, will further reinforce inDrive’s people-first identity and increase awareness among drivers who are not currently on the platform.
The campaign reflects inDrive’s deliberate shift toward relationship-building through culturally relevant engagement during one of the most significant periods in the Muslim calendar.
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Glovo Unveils New Road Safety Feature for Safety of Nigerian Riders
By Modupe Gbadeyanka
To enhance the safety of riders in Nigeria, a leading multicategory technology company, Glovo, has launched a new road safety feature on its mobile application.
The initiative was introduced in collaboration with the Federal Road Safety Corps (FRSC). It was designed to address key challenges in Nigeria’s fast-growing e-commerce and mobility ecosystem by implementing data-driven preventive measures to enhance road safety.
Also, Glovo has concluded plans with the FRSC to organise a road safety training. This has already been done in Lagos, with the training coming to Abuja on Friday, strengthening rider protection and road safety standards across Nigeria.
The Interim General Manager for Glovo Nigeria, Ms Reni Onafeko, said the new feature reflects the company’s long-term investment in safety, innovation, and responsible business growth in Nigeria.
Ms Onafeko explained that the feature combines advanced technology with structured training to ensure safer roads for riders and the broader public, highlighting the feature’s voluntary opt-in nature, explaining that riders can use it to improve their safety.
“The launch of this new feature reflects our commitment to building a culture of prevention rather than reaction. By equipping riders with real-time data about their riding behaviour, we are empowering them to make safer decisions every day. This initiative is about protection, education, and continuous improvement.
“Our approach combines innovation, partnership, and human-centred design. We are not just introducing a feature; we are reinforcing our responsibility to protect the people who power our platform every day.
“By working closely with regulators and organising safety training for riders, we are contributing to safer roads and a more sustainable ecosystem in Nigeria,” she stated.
In his remarks, the Senior Special Assistant to the Lagos State Governor on Transportation Education and Innovation, Mr Oluwatobi Idowu, noted that the training was a good initiative by Glovo Nigeria, urging riders to take advantage of the unique opportunity to familiarise themselves with the necessary safety rules while driving.
On his part, the Assistant Corps Commander for the Lagos Sector Command of the FRSC, Mr Philip Ogah, who represented the Lagos State Sector Commander, Mr Kehinde G. Hamzat, commended Glovo Nigeria for facilitating a refresher course for riders.
He noted that the training was necessary to help riders be really conscious about their safety, stating that it was better for them to be equipped with such interactive safety tools.
“There are levels of preparation before driving on the road. As a rider, learning is key and a continuous process. This kind of training makes you more informed as you drive.
“As a technological platform, it is good to see that Glovo keeps on ensuring that riders are trained to have a better usage of and better behaviour on Nigerian roads,” the FRSC chief in Lagos stated.
Also speaking, the Head of Operations at Glovo Nigeria, Oluwaseun Okugboye-Bello, explained that the introduction of the safety feature on the Glovo app has become an essential new addition for riders’ self-improvement while collaborating with the platform, noting that it was incorporated into the app to protect riders, commuters, and pedestrians.
At the end of the training session, certificates were presented to 70 participants.
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