Business
Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance
Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance
By
Felix Oboagwina
As last year drew to a close, the 58 insurance firms in Nigeria under the umbrella of the National Insurance Commission (NAICOM) served notice that minimum Third-Party subscription for motor vehicles would no longer cost N5,000 but N15,000 beginning from this New Year. Some years ago, they charged N1,000 as minimum payable on motor insurance.
Contrast with the current debate on the social media about MultiChoice serving a notice of increase on GOtv and DSTV subscribers. The increase ranges from 16 percent to 22 percent. Despite this, people are shouting BLUE MURDER! Subscribers are calling for the cable TV firm to be skinned or beheaded, saying MultiChoice would not dare such in its home headquarters, South Africa. Last time MultiChoice tried it, the matter went as far as the National Assembly.
This same National Assembly now looks the other way with the new insurance premiums. What is the cable TV’s 22 percent increment, compared to 200 percent by NAICOM? What insurers have done is brazen and indecent! To increase the minimum Third-Party motor insurance to 300 percent is not only unreasonable it is draconian. It is an act of impunity. It is extortionist, insensitive, inconsiderate, untimely, ill-advised, selfish and self-serving. It panders to the unbridled greed of industry operators. The brazenness is insulting. In short, the hike is highly inconsiderate, especially in this era of scarce and expensive fuel and an economy still reeling from the effects of the COVID-19 pandemic.
Yet insurers blame the N10,000 increment on “current economic realities.” Not acceptable!
There are an estimated 13 million vehicles in Nigeria, of which only some 3 million have been captured in the insurance net. Instead of seeking ways to lure the noncompliant 10 million vehicle-owners to buy into insurance, insurers want to milk conformists to death. Where will patrons accommodate this increase, in a country with a minimum wage of N30,000?
Of course, those earning minimum wage do not own vehicles. However, they use transportation. When the prices of vehicle inputs like fuel, tolls and spare parts become costlier, vehicle owners simply transfer them to commuters through higher fares. Adding a costlier insurance to the motor value chain amounts to subjecting vehicle owners to double, nay multiple, jeopardy, with the spiral effect translating to higher transport fares and costlier freighting fees.
Imagine if other elements in the motor driving particulars too decide to follow suit. It means that drivers and owners would pay three times on:
1. Vehicle Licence
2. Road Worthiness
3. Hackney Permit
4. Drivers Licence
5. Customs Papers
6. Tinted Glass Permits (which the Police Force deserves kudos for waiving) and other council and business locations tickets.
Someone said, “Insurance is the sale of promises. The ‘customer’ pays money now; the insurer promises to pay money in the future if certain events occur. Sometimes, the promise will not be tested for decades.” Sometimes the promise will not be even tested forever! In fact, only about 15 percent insurance subscribers ever bother to make accident claims. The greater proportion of claimants comes from corporate policyholders. Thus, the insurance firm is the greater beneficiary in the relationship because the individual motor policyholder would just lick his wound and settle the bills jejely.
Everyone knows that the Third-Party insurance on vehicles is just to fulfil all righteousness –a legal requirement with which transport owners must comply. In Nigeria here, they refer to it as, “Let-My-People-Go Insurance,” or “Let-Me-Pass Insurance.” Third-Party is the paper drivers obtain just to satisfy the police. That’s all!
In case of accident or damage to Third-Party vehicles, insurance customers hardly bother to engage themselves in the stress of filing claims. The red tape and bureaucracy is so organised as to be stressful and time-wasting. Therefore, claimants simply pay from their pockets. Commercial bus and employed drivers are a common sight, kneeling and prostrating on the ground for the mercy of those whose cars they bash. Hence, the insurance firm reaps from doing NOTHING!
Since owning personal cars for over two decades now, I have been involved in accidents. Not once have I made a single claim! In fact, apart from an Insurance Broker in my church, no one I know has EVER made a claim. Not one! In fact, late last year, someone in my neighbourhood had his SUV crushed by a falling container. The owner of the offending trailer came privately to plead for the victim to accept N7 million for a vehicle worth N12 million. Family members told the victim to thank God for surviving the ordeal and accept the money. That is how we roll.
As of 2019, the Nigerian industry ranked 62nd in the world with $1.64 billion premium. That makes it an industry worth some N1.2 trillion. In 2021, the unaudited Insurance Industry performance in Nigeria showed that insurance firms made a gross income of N630 billion, and posted N238.05 billion as net expenditure. Talk about a fertile cash cow.
Insurers benefit colossally from the statutory laws making vehicle insurance cover mandatory for cars, trucks and motorcycles. The Insurance Act 2003 mandates all motorists to carry the minimum of a Third-Party Motor Insurance Policy. Section 68 of the 2003 Insurance Act stipulates:
“No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”
The law varies in the US, where most states, require vehicles to carry motor insurance. However, there are two US states where it is not mandatory –Virginia and New Hampshire. Countries like New Zealand, Saudi Arabia and Manila do not require a compulsory insurance for vehicles to ply the roads.
It is compulsory in Britain too, hence, we see that mandatory insurance is part of our colonial heritage. This colonial heritage must go now. As our colonial hangover, motor insurance is being weaponised for inordinate extortion, unbridled greed and excessive profiteering by insurers operating under a NAICOM cartel.
Time has come to break up this cartel. With NAICOM calling the shots, it amounts to a monopoly, which should not hold in a free enterprise and deregulated economy. NAICOM is operating like a cartel. We consumers reject being milked by this privileged cartel. Nigeria should make insurance OPTIONAL. This Ninth National Assembly or the coming Tenth National Assembly should make this a matter of urgent public importance. Legislators should change the law to deregulate insurance or scrap this motor insurance law. The NASS should tweak the Insurance Act. Expunge, reframe, rephrase, rewrite restructure or remove that part of the law that makes it compulsory for vehicles to carry an insurance paper to travel the roads. If vehicles MUST be insured, the law should permit no more than a marginal increase, going forward. Motor insurance premium should take a cue from MultiChoice –no increment should be over 20 percent.
Legislators need to make a law to make motor insurance deregulated, optional or non-exploitative. They would be writing their name in gold.
(OBOAGWINA IS AN AUTHOR AND JOURNALIST, AND MAY BE REACHED VIA: [email protected])
Business
Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing
Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing
By George Omagbemi Sylvester | Published by SaharaWeeklyNG.com
“Shift or Structural Demand? A Declaration of Civic Duty in a Nation at a Fiscal Crossroads.”
In the unfolding narrative of national development and economic reform, few instruments are as defining as tax compliance. For Nigeria, a nation perpetually grappling with revenue shortfalls, structural dependency on a single export commodity, and entrenched informal economic behaviour, the Federal Government’s recent clarification on tax return deadlines is not mere bureaucratic noise. It is a deliberate and inescapable declaration: the social contract between citizen and state must be honoured through transparent, lawful and timely tax reporting.
At its core, the government’s pronouncement is stark in its simplicity and radical in its implications. Federal authorities, speaking through the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, have made it unequivocally clear that every Nigerian, whether employer or individual taxpayer, must file annual tax returns under the law. This encompasses self-assessment filings by individuals that too many assumed ended once employers deducted pay-as-you-earn taxes from their salaries.
This is not an optional civic suggestion, it is mandatory, backed by statute, and tied to a broader vision of national fiscal responsibility. Citizens can no longer hide behind ignorance, apathy, or false assumptions. “Many people assume that if their employer deducts tax from their salaries, their obligations end there. That is wrong,” Oyedele warned, emphasizing that the obligation to file remains with the individual under both existing and newly reformed tax laws.
The Deadlines and the Reality They Reveal.
Across the federation, state and federal revenue authorities have reaffirmed statutory deadlines in pursuit of compliance. The Lagos State Internal Revenue Service, for instance, moved to extend its filing date for employer returns by a narrow window, reflecting the reality that compliance often lags behind legal timelines. The extension was intended not as leniency, but as a pragmatic effort to allow accurate and complete submissions, underscoring that true compliance rises above mere mechanical ticking of a box.
At the federal level, Oyedele’s intervention was even more fundamental. He reminded Nigerians that annual tax returns for the preceding year must be filed in good faith, with integrity and in respect of the law. This applies regardless of income level including low-income earners who have historically believed that they are outside the tax net. “All of us must file our returns, including those earning low income,” he stated.
Herein lies one of the most challenging truths of contemporary Nigerian governance: widespread tax non-compliance is not just a technical breach of law, it is a deep cultural and structural issue that reflects decades of mistrust between citizens and the state.
The Root of the Problem: Non-Compliance as a Symptom.
Nigeria’s tax culture has long been under scrutiny. Public discourse and economic analysis consistently show that a significant majority of eligible taxpayers do not file annual returns. Oyedele highlighted that even in states widely regarded as tax administration leaders, compliance remains strikingly low, often below five percent.
This widespread non-compliance stems from multiple sources:
A long history of weak tax administration systems, where enforcement was inconsistent and penalties were rarely applied.
A perception that public services do not reflect the taxes collected, eroding the citizenry’s belief in reciprocity.
An informal economy where income often goes unrecorded, making filing seem irrelevant or impossible to many.
Lack of awareness, with many Nigerians genuinely believing that tax liability ends with employer deductions.
The government’s renewed push for compliance directly challenges these perceptions. It signals a shift from voluntary or lax compliance to structured accountability, a stance that aligns with best practices in modern public finance.
Why This Matters: Beyond Deadlines.
At its most profound level, the insistence on tax return filings is about nation-building and shared responsibility.
Scholars of public finance universally agree that a robust tax system is the backbone of sustainable development. As the eminent economist Dr. Joseph E. Stiglitz has observed, “A society that cannot mobilize its own resources through fair taxation undermines both its government’s legitimacy and its capacity to provide for its people.” Filing tax returns is not a mere administrative task, it is a declaration of participation in the collective project of national advancement.
In Nigeria’s context, this declaration carries weight. With the enactment of comprehensive tax reforms in recent years (including unified frameworks for tax administration and enforcement) authorities now possess broader statutory tools to ensure compliance and accountability. These measures, which include electronic filing platforms and stronger enforcement powers, have been framed as fair and equitable, targeting efficiency rather than arbitrariness.
Yet the success of these reforms depends heavily on citizens embracing their civic duties with sincerity. And this depends on mutual trust, the belief that paying taxes yields tangible benefits in infrastructure, education, healthcare, security and social services.
Voices From Experts: Fiscal Responsibility as a Public Ethic.
Tax law experts and economists, reflecting on the compliance push, have underscored a universal theme: taxation without transparency is inequity, but taxation with accountability is empowerment. When managed with fairness, a functional tax system can reduce dependency on volatile revenue sources, stabilise national budgets, and support long-term investment in human capital.
Professor Aisha Bello, a respected authority in fiscal policy, notes that “Tax compliance is not a burden; it is the foundation upon which social contracts are built. A citizen who honours tax obligations affirms the legitimacy of governance and demands better performance in return.”
Similarly, a leading tax scholar, Dr. Emeka Okon, argues that “The era when Nigerians could evade broader tax responsibilities simply because automatic deductions occur at source must end. For a modern economy, every eligible citizen must be part of the formal tax fold not as victims, but as stakeholders.”
These authoritative voices point to an unassailable truth: filing tax returns is both a legal requirement and a moral responsibility, an expression of citizenship in its fullest sense.
Challenges on the Ground: Compliance and Capacity.
While the rhetoric of compliance is compelling, the reality on the ground demands nuanced understanding. Many taxpayers (especially in the informal sector) lack meaningful access to digital platforms and resources for filing returns. For others, the fear of bureaucratic complexity and perceived punitive enforcement deters participation.
The government, for its part, has responded by promoting online systems and pledging greater taxpayer support. Tax authorities are increasingly engaging stakeholders to demystify filing processes, explain requirements and offer assistance. This mix of enforcement and facilitation is essential. As one seasoned revenue specialist observed: “The state cannot compel compliance through force alone; it must earn it through education, simplicity and fairness.”
The Broader Implication: A New Social Compact.
Ultimately, Nigeria’s renewed emphasis on tax return filing transcends administrative deadlines. It is an unequivocal declaration that national development is a shared responsibility, that citizens and state must engage in a transparent, accountable, and reciprocal relationship.
Tax compliance, therefore, becomes far more than a legal act; it becomes a moral claim on the nation’s future.
When citizens file their returns honestly, they affirm their stake in the nation’s destiny. When the government collects taxes transparently and deploys them effectively, it strengthens not only public services but civic trust itself.
In this sense, the deadlines proclaimed by Nigeria’s fiscal authorities mark not an end but a beginning; the beginning of a civic epoch in which accountability replaces apathy, participation replaces indifference and national purpose triumphs over fragmentation.
The road ahead will not be easy. But in demanding compliance, Nigeria is demanding more than tax returns. It is demanding commitment and that, ultimately, is the foundation on which nations are built.
Business
BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025
BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025
By femi Oyewale
Business
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
In celebration of the season of love, Adron Homes and Properties has announced the launch of its special Valentine campaign, “Love for Love” Promo, a customer-centric initiative designed to reward Nigerians who choose to express love through smart, lasting real estate investments.
The Love for Love Promo offers clients attractive discounts, flexible payment options, and an array of exclusive gift items, reinforcing Adron Homes’ commitment to making property ownership both rewarding and accessible. The campaign runs throughout the Valentine season and applies to the company’s wide portfolio of estates and housing projects strategically located across Nigeria.
Speaking on the promo, the company’s Managing Director, Mrs Adenike Ajobo, stated that the initiative is aimed at encouraging individuals and families to move beyond conventional Valentine gifts by investing in assets that secure their future. According to the company, love is best demonstrated through stability, legacy, and long-term value—principles that real estate ownership represents.
Under the promo structure, clients who make a payment of ₦100,000 receive cake, chocolates, and a bottle of wine, while those who pay ₦200,000 are rewarded with a Love Hamper. Payments of ₦500,000 attract a Love Hamper plus cake, and clients who pay ₦1,000,000 enjoy a choice of a Samsung phone or a Love Hamper with cake.
The rewards become increasingly premium as commitment grows. Clients who pay ₦5,000,000 receive either an iPad or an all-expenses-paid romantic getaway for a couple at one of Nigeria’s finest hotels, which includes two nights’ accommodation, special treats, and a Love Hamper. A payment of ₦10,000,000 comes with a choice of a Samsung Z Fold 7, three nights at a top-tier resort in Nigeria, or a full solar power installation.
For high-value investors, the Love for Love Promo delivers exceptional lifestyle experiences. Clients who pay ₦30,000,000 on land are rewarded with a three-night couple’s trip to Doha, Qatar, or South Africa, while purchasers of any Adron Homes house valued at ₦50,000,000 receive a double-door refrigerator.
The promo covers Adron Homes’ estates located in Lagos, Shimawa, Sagamu, Atan–Ota, Papalanto, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger States, offering clients the opportunity to invest in fast-growing, strategically positioned communities nationwide.
Adron Homes reiterated that beyond the incentives, the campaign underscores the company’s strong reputation for secure land titles, affordable pricing, strategic locations, and a proven legacy in real estate development.
As Valentine’s Day approaches, Adron Homes encourages Nigerians at home and in the diaspora to take advantage of the Love for Love Promo to enjoy exceptional value, exclusive rewards, and the opportunity to build a future rooted in love, security, and prosperity.
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