Only 3% of Nigerians Covered by Insurance

Int’l Desk: Only 3% of adults in Nigeria have insurance, highlighting a significant protection gap as the country continues to record deadly boat accidents.

About 34 lakh Nigerian adults are covered by insurance, according to a 2023 survey by Enhancing Financial Innovation & Access (EFInA).

The issue has received renewed attention after a boat accident in Sokoto State killed at least 50 people, including about 40 children.

More than 80 passengers were on board, according to the Associated Press.

It is not yet clear whether the boat was insured or whether the families of those killed will receive any insurance compensation.

Nigeria has recorded hundreds of deaths in boat accidents in recent years.

Premium Times reported that 1,072 people were killed in 71 boat accidents between 2019 and 2023.

TheCable reported a further 326 deaths from boat accidents in 2024.

However, there is no reliable national data showing how many of the vessels involved were insured or how many victims and their families received insurance payouts.

What Insurance Can Cover

Insurance is available for vessels operating in Nigeria.

Marine hull insurance generally covers financial losses when an insured vessel is damaged.

Passenger liability insurance provides a different type of protection. Depending on the terms of a policy, it can provide compensation when passengers are killed or injured in an accident.

This means that having insurance for a boat does not necessarily mean its passengers are also covered.

There is no reliable national figure showing how many passenger vessels operating on Nigeria's inland waterways have passenger liability insurance.

Nigeria's 2023 inland waterways transport regulations also do not appear to clearly require such insurance for every local passenger vessel.

As a result, passengers involved in an accident are not necessarily guaranteed an insurance payout.

Claims Are Being Paid

Nigeria's insurance industry does, however, have a relatively high claims settlement rate in marine and aviation insurance.

The National Insurance Commission said 94.1% of reported claims in the two categories were settled during the final quarter of 2024.

The figures suggest that access to insurance remains a key issue, rather than claims payment alone.

Why Do So Few Nigerians Have Insurance

EFInA's 2023 survey identified low incomes and limited knowledge about insurance among the main reasons for low coverage.

A lack of understanding about why insurance is needed was also identified as a barrier.

The figures point to a wider protection gap: insurance products are available, but only a small proportion of Nigerian adults use them.

The situation is less clear for passenger boats because comprehensive national data on their insurance coverage is not publicly available.

The Sokoto accident has therefore raised questions not only about safety on Nigeria's waterways, but also about the financial protection available to passengers and their families.

Whether the boat involved was insured, and whether the families of those killed will receive compensation, remains unclear.