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Without Insurance, Big-Ticket Investments Not Possible – NIA Boss
By Prince Benson Davies
The prevalence of fake motor insurance in Nigeria has assumed alarming proportions despite concerted efforts by the National Insurance Commission, NAICOM, and the Nigerian Insurers Association, NIA, to curb the menace through the Nigerian Insurance Industry Database, NIID.
The Director-General of the Nigerian Insurers Association, Mrs. Bola Odukale, raised the alarm while presenting a paper on The Role of Insurance Industry in Supporting Nigeria’s Aspiration of a One Trillion Dollar Economy at the 2026 Annual Conference of the Finance and Business Online Publishers Association, FiBOP, held at Orchids Hotel, Lekki, Lagos.
Speaking on the low penetration of insurance and public perception of the industry, Odukale said the narrative is gradually changing as operators are working assiduously to rebuild public trust and deepen insurance adoption across the country.
She disclosed that less than 30 per cent of vehicles on Nigerian roads have genuine insurance cover, with only about three million genuine motor policies for over 12 million vehicles plying Nigerian roads. Many motorists, she said, still parade fake insurance certificates.
She described the situation as not only a threat to road users and third parties but also a major setback to the growth of the insurance industry and the broader financial system.
Odukale urged the media to join the campaign against insurance fakery, noting that journalists and online publishers have a critical role to play in educating the public, promoting verification of insurance certificates through the NIID platform and exposing the dangers of fake insurance.
On the issue of public distrust arising from delays in claims settlement, the NIA Director-General said the industry has improved tremendously, with insurance companies now settling claims faster than before.
She attributed the improvement to the ongoing recapitalisation exercise in the industry, which has empowered companies with bigger capital base and enhanced capacity to settle claims promptly and support businesses effectively.
Insurance does not just pay claims; it guarantees that the factories, farms, trucks, shops and lives that will build Nigeria’s one trillion dollar economy do not collapse when risk happens, she said.
According to her, the insurance industry contributes significantly to the nation’s Gross Domestic Product, GDP, and has a critical role to play in achieving the one trillion dollar economy target set by the Federal Government.
Odukale noted that insurance supports business growth and expansion by providing protection against unforeseen risks and creating confidence for entrepreneurs to invest and innovate.
She stressed that without insurance, big-ticket investments would not be possible as banks and financial institutions require insurance cover before financing major projects and infrastructure development.
She said insurance helps businesses and individuals recover from losses, safeguards productive assets, mobilises long-term funds for investment and ensures business continuity.
The NIA boss urged the media to promote financial inclusion by telling the positive stories of claims payment and advocating for active citizenship in insurance adoption.
She called on FiBOP members and the wider media community to help reshape the public perception of insurance by highlighting genuine cases of claims settlement and the role of insurance in protecting lives, property and businesses.
She added that achieving a one trillion dollar economy will require a resilient insurance sector that can protect the assets, investments and human capital that will drive growth.
