Nigeria Motor Insurance Market Size to Reach USD 1.82 Billion by 2031

Published | 04 July 2025

Nigeria Motor Insurance Market is flourishing primarily due to rising vehicle ownership, regulatory enforcement, digital adoption, and increasing accident risks.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Nigeria Motor Insurance Market size by value at USD 1.08 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Nigeria Motor Insurance Market size to boom at a significant CAGR of 7.65%, reaching a value of USD 1.82 billion by 2031. The growth of Motor Insurance Market in Nigeria is propelled by rising vehicle ownership, driven by urbanization and a growing middle class. Regulatory enforcement of mandatory third-party insurance boosts compliance, while increasing road accidents heighten demand for financial protection. Digital platforms and mobile apps enhance policy accessibility and renewals. Telematics and usage-based insurance models are gaining traction, encouraging safer driving and personalized pricing. Economic reforms and partnerships between insurers and automakers are fostering innovation. Additionally, consumer awareness campaigns and improved claims transparency are building trust, further expanding the insured population and supporting long-term growth of Nigeria Motor Insurance Market across both personal and commercial vehicle segments.

Opportunity – Pay-as-You-Go and Usage-based Insurance Models

The adoption of pay-as-you-go and usage-based insurance (UBI) models is transforming Nigeria Motor Insurance Market. These models leverage telematics to assess driving behavior and mileage, enabling insurers to offer personalized premiums. This appeals to cost-conscious drivers, especially low-mileage users and fleet operators seeking flexible, fair pricing. Partnerships like Leadway and Leytro’s pay-as-you-drive initiative highlight growing market interest. UBI incentivizes safer driving through rewards and real-time feedback, reducing accident risks and claims. As digital infrastructure improves, these innovative models are expected to boost insurance penetration, enhance customer satisfaction, and reshape risk assessment in Nigeria’s evolving mobility ecosystem.

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Private Vehicles Segment Leads Nigeria Motor Insurance Market ​

Private vehicles form the largest segment in Nigeria Motor Insurance Market, primarily due to the rapid rise in personal vehicle ownership, driven by urbanization, a growing middle class, and limited public transportation. Most private vehicle owners are required by law to carry at least third-party insurance, boosting policy volumes. Additionally, many opt for comprehensive coverage to protect against theft, accidents, and natural disasters. The convenience of digital platforms and flexible premium options further supports uptake. Therefore, private vehicles consistently contribute the highest share to both policy count and premium revenue in the market.

Impact of Escalating Geopolitical Tensions on Nigeria Motor Insurance Market

Escalating geopolitical tensions are disrupting global supply chains, inflating fuel prices, and increasing vehicle repair costs. For Nigeria Motor Insurance Market, this leads to higher claims, premium volatility, and reinsurance repricing. Imported inflation raises the cost of spare parts and logistics, straining underwriting margins. Capital market instability may also affect insurers’ investment portfolios and solvency. However, demand is rising for specialized coverage like political violence and business interruption. Insurers must adapt with digital innovation, risk-based pricing, and resilient strategies to navigate uncertainties and maintain profitability in this evolving risk environment.

Competitive Landscape

Nigeria Motor Insurance Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Leadway Assurance Company Ltd, AIICO Insurance Plc, AXA Mansard Insurance Plc, Custodian and Allied Insurance Plc, NEM Insurance Plc, Mutual Benefits Assurance Plc, Cornerstone Insurance Plc, Sovereign Trust Insurance Plc, Lasaco Assurance Plc, Industrial and General Insurance Plc, and Universal Insurance Plc. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in Nigeria Motor Insurance Market.

Don’t miss the business opportunity in Nigeria Motor Insurance Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Nigeria Motor Insurance Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Nigeria Motor Insurance Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

Scope of the Report

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