The National Insurance Commission (NAICOM) has warned operators of fake insurance outfits to desist from their illegal trade or face severe sanctions, as the regulator intensifies its clampdown on fraudulent practices in the industry.
Reaffirming its partnership with the Nigerian Police Force, NAICOM said there would be no hiding place for perpetrators, as joint enforcement operations would continue until illegal operators are completely rooted out.
On Wednesday, officials of NAICOM, in collaboration with the Federal Capital Territory (FCT) Police Command, raided Mabushi, Abuja — one of the country’s most notorious hotspots for counterfeit insurance. The exercise led to the seizure of forged documents, including fake third-party motor vehicle insurance certificates, and the arrest of suspects behind the syndicate.
Speaking to journalists after the operation, NAICOM’s Head of Market Development, Adeyemi Abubakar, said the enforcement drive is part of efforts to sanitise the motor insurance space and protect motorists from exploitation.
“Many Nigerians are paying for worthless documents that cannot stand the test of claims. Imagine buying third-party motor vehicle insurance and discovering it’s fake when you need it. People’s lives are at risk. This is why we are determined to stamp out illegal operators,” Abubakar said.
He explained that the nationwide exercise began earlier in the year following a directive from the Inspector-General of Police mandating compliance with genuine third-party motor insurance. According to him, NAICOM will extend the clampdown to other parts of the country to safeguard consumers and restore confidence in the market.
To help motorists avoid falling victim, Abubakar urged the public to patronise only licensed insurance companies and registered agents. He also advised them to use NAICOM’s digital verification tools to confirm the authenticity of any policy before purchase.
“There is an app and a USSD code available for policy verification. If you are not licensed by NAICOM, you cannot sell insurance — not as an agent, broker, or company. The process is clear: get registered, link up with a licensed insurer, and operate with proper authorisation. Anything outside this is illegal,” he stressed.
Abubakar warned fraudsters to abandon the trade, adding that NAICOM, with police support, will continue its nationwide enforcement to protect Nigerians and strengthen trust in the industry.
