NAICOM Arrests Fake Insurance Agents in Abuja Crackdown
By Patience Ikpeme
The National Insurance Commission (NAICOM) has apprehended several insurance agents in the Federal Capital Territory for allegedly issuing counterfeit vehicle insurance policies.
The enforcement exercise, which led to the raid and subsequent arrests, was carried out by the regulatory body in the Mabushi district of Abuja as part of a broader campaign to drive transparency and efficiency across the industry.
Addressing journalists shortly after the operation, the Director of Legal, Enforcement, and Market Development at NAICOM, Dr. Talmiz Usman, stated that the exercise stems directly from the commission’s firm resolve to eradicate fake insurance policies and unauthorized operators from the Nigerian market.
Dr. Usman explained the foundational purpose of vehicle insurance, noting that illegal operations completely subvert the protective framework established by the government for road users.
“We know the objective, the intent of the third party motor insurance,” Dr. Usman said. “The whole objective is to protect innocent third parties who are not party to the insurance contract. So the role, the intention of the government is that, the government will not say you shouldn’t drive a car. But we know there is a risk when you drive a car, you can damage somebody’s property, you can cause bodily injury, you can cause death.”
The director expressed concern over the widespread proliferation of forged certificates, which many motorists purchase simply to evade law enforcement rather than to secure genuine financial protection.
“Out of that, the law says yes, you can go ahead and drive your car,” Dr. Usman continued. “But for you to drive, you must have an insurance that protects that innocent third party. And that’s the objective. Now we have a situation where people are selling fake insurance all over the country. What they think about is that, I have an insurance, I will just show it to law enforcement agencies and pass when I’m driving. Which defeats the objective of the insurance.”
He pointed out the severe financial consequences victims face when an accident occurs under a forged policy, stating that “consequently, when there is a claim, nobody to pay. Because one, you get an insurance from a non-insurance company. Two, you are getting a fake cover that is nothing more than a worthless paper.”
Clarifying the legal boundaries of who is authorized to dispense these policies, Dr. Usman warned that cooperative societies and even statutory motor vehicle administration offices lack the legal mandate to sell third-party insurance covers.
“It’s illegal and it’s against the Nigerian Insurance Industry Reform Act, which Mr. President generously signed last year,” he noted. “And also, it’s not even allowed for even the VIOs to sell insurance.”
Detailing the next steps for the suspects, the director indicated that the regulatory body is fully prepared to utilize its expanded legal teeth to ensure swift judicial outcomes, pointing to key updates in the sector’s governing legislation.
“The beauty about the new law is that it empowers the Commission to prosecute the offenders,” Dr. Usman explained. “In the previous law, for you to prosecute, you have to pass to the office of the Attorney General. But now the law says, notwithstanding the powers of the Attorney General, the constitutional powers, which he can take over any prosecution, the Commission now has the powers to prosecute such kind of offenders.”
He concluded by warning that the regulatory clampdown in Abuja is only the beginning of a nationwide sweep, confirming that the commission will soon extend its enforcement raids and arrests to the remaining states of the federation to protect the integrity of the insurance market.
“And the law is very clear about it,” Dr. Usman added. “It’s a criminal offence. So we’ll make sure that all those arrested today are prosecuted.”
