"Many Nigerians Discover Their Insurance Is Fake Only After an Accident," Says Otrac Co-founder Adekunle Olanrewaju Emmanuel

  By Ayodele Oyeniyi

Nigeria's efforts to digitise vehicle insurance verification are gaining momentum as regulators intensify measures to tackle the widespread circulation of fake motor insurance certificates across the country.

The National Insurance Commission (NAICOM) is expanding digital collaboration with the Federal Road Safety Corps (FRSC) and the Nigeria Police Force to improve vehicle verification and strengthen enforcement against fraudulent insurance documentation. The initiative is expected to reduce reliance on paper certificates by linking insurance records with national vehicle databases and digital verification systems.

The move comes amid longstanding concerns about the prevalence of fake motor insurance certificates. Industry estimates indicate that more than 70 per cent of motor insurance documents in circulation may be unauthenticated, while insurance penetration in Nigeria remains among the lowest in Africa.

According to insurance stakeholders, fake documentation often goes unnoticed until vehicle owners attempt to make claims following accidents, theft, or other incidents.

Commenting on the development, Adekunle Olanrewaju Emmanuel, Chief Executive Officer and Co-founder of Otrac Telematics, said many motorists unknowingly purchase documents that provide no real financial protection.

"Many vehicle owners discover their insurance is fake only after an accident or theft, when they try to file a claim. By then, it is already too late. Digital verification is helping shift the focus from checking paper documents to confirming genuine records directly from official databases."

He added that integrating insurance verification with national vehicle databases could improve compliance while making it more difficult for fraudulent certificates to circulate.

Beyond vehicle tracking and fleet management, Otrac Telematics also supports vehicle owners with compliance services, including genuine motor insurance processing, licence renewals, vehicle documentation, and other regulatory requirements.

Industry observers say Nigeria's transition towards digital verification reflects a broader effort to modernise vehicle administration through connected government databases. As more services become integrated, motorists are expected to benefit from faster verification processes, reduced fraud, and improved confidence in insurance coverage.

The reforms are also expected to strengthen enforcement by enabling security agencies to verify insurance status electronically rather than relying solely on physical certificates during roadside inspections.

For fleet operators and commercial vehicle owners, experts say accurate insurance records have become increasingly important as businesses place greater emphasis on regulatory compliance, operational continuity, and risk management.

As Nigeria continues to digitise vehicle administration, stakeholders believe the effectiveness of motor insurance will increasingly depend not only on policy availability but also on the ability to verify its authenticity quickly through connected digital systems.

Media Contact

Otrac Telematics

Email: hello@otrac.ng

Phone/WhatsApp: +234 804 700 2159

Website: otrac.ng