Nigeria’s compulsory third-party motor insurance market could be on the point of significant expansion as reforms introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 expose a vast but underutilised market, constrained by poor claims awareness, weak service delivery and low consumer confidence.
A new industry report by Leenkaz Insurance Brokers Limited suggests that while NIIRA 2025 has strengthened insurers’ capital base, expanded policyholder protections and introduced statutory claims timelines, the industry’s next growth phase will depend less on regulation and more on converting millions of compulsory policyholders into active insurance users.
The report, titled: The Protection Paradox: Nigeria’s Motor Insurance Reality and the NIIRA 2025 Reform Agenda, was unveiled during a stakeholder webinar attended by insurers, brokers, regulators, actuaries and investment professionals. It examined responses from vehicle owners across 24 states and the Federal Capital Territory and found a disconnect between compulsory insurance compliance and actual consumer protection.
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