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How Much is 3rd Party Car Insurance in Nigeria?

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How Much is 3rd Party Car Insurance in Nigeria?

If you’re a car owner in Nigeria, you’ve probably heard the term “3rd party car insurance” thrown around quite a bit. But what exactly is it, and how much does it cost? These are common questions that bother every vehicle owner in Nigeria.

With the increasing importance of insurance coverage for vehicles, understanding the mechanism and cost of third-party car insurance has become crucial. You might be wondering: What factors influence the price of third-party car insurance? How does it compare to comprehensive coverage? Or if it is mandatory under Nigerian law? Luckily for you, you’ve landed on the right page to get the answers you seek. In this article, we will explore the mechanism, effects and benefits of 3rd party insurance in Nigeria.

What is 3rd Party Car Insurance?

Third-party car insurance is a type of vehicle insurance that covers you against claims made by someone else (the “third party”) for damage or injuries you cause. For example, if you have third-party car insurance and you accidentally damage someone else’s car in a collision, your insurance would help cover the cost of their car repairs. It’s basically a way to protect yourself from financial liabilities that arise from unintentional harm to others.

The third-party insurance policy is purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party). In most countries like Nigeria, third-party insurance is compulsory for all road users. Hence, it’s mandatory if you wish to drive a vehicle in the country.

Types of 3rd Party Car Insurance

When it comes to third-party car insurance, there are two main types:

  1. Bodily Injury Liability: This covers expenses related to injuries suffered by people in an accident. It includes things like hospital bills, lost wages, and compensation for pain and suffering.
  2. Property Damage Liability: This type of insurance takes care of costs associated with damage to or loss of property, such as damage of the car or vehicle, or providing compensation for damaged parts of the vehicle.

In most cases, it’s mandatory by law to have third-party car insurance. For instance, drivers are generally required to have a minimum level of bodily injury liability and property damage liability coverage, but the specific requirements can vary from state to state. Some states might not require both types, or they may have different limitations. Each state or country may have its own minimum coverage requirements.

How Much is 3rd Party Insurance in Nigeria?

The mandatory fee for third-party vehicle insurance in Nigeria has recently been raised by the Federal Government. The new amount to be paid by motorists has been increased from N5,000 to N15,000, marking a significant 200 percent rise. This change was approved on the 4th of March, 2023. However, depending on the type of third party insurance, and the insurance company, the amount may vary slightly.

Is 3rd Party Insurance Mandatory in Nigeria?

Yes, in Nigeria, every driver is required to have Third Party Insurance to legally drive on the roads. This insurance is the minimum requirement for all motorists in Nigeria. The main goal is to make sure that in case of an accident, other people involved receive fair compensation for any vehicle damage or injuries they may suffer.

Third-Party Car Insurance Claim Process

If you find yourself facing a third-party insurance claim, follow this step-by-step process:

  1. Immediate Notification: Notify your insurance company as soon as the incident occurs and officially register your claim.
  2. File a Police FIR: Document the details of the claim by filing a First Information Report (FIR) with the police. Be sure to retain a copy of the FIR, as you will need it when filing a claim with your insurance company.
  3. Motor Accidents Claim Tribunal (MACT): The claim will be referred to the Motor Accidents Claim Tribunal (MACT), which will determine the amount you are liable to pay to the third party for their financial loss.
  4. MACT Judgment: After the MACT passes its judgment, promptly inform your insurance company and proceed to file your third-party claim.
  5. Insurance Company Compensation: Your insurance company will then handle the compensation process on your behalf.

To initiate a third-party claim, you must provide the following documents to your insurance company:

  • A completed and signed claim form.
  • A copy of your insurance policy.
  • A copy of the police FIR.
  • A copy of your driver’s license.
  • A copy of your proof of identity.
  • Any other relevant police reports, if applicable.

Benefits of Third-Party Car Insurance

Having third-party coverage for your car comes with several advantages:

  1. It ensures you comply with the requirements of the Motor Vehicles Act, 1988, thus helping you avoid legal fines and penalties.
  2. This coverage protects you from the risk of having your driving license suspended.
  3. With consistent and affordable premiums across insurers, it offers financial predictability.
  4. It provides a sense of financial security by taking care of any third-party claims through the policy.
  5. In the event of an accident, it guarantees that you won’t have to personally pay for damages or injuries caused to others.
  6. By covering expenses related to property damage and medical costs for others, it ensures comprehensive protection in case of an accident.
  7. Third party car insurance also offers legal support if you find yourself facing a lawsuit as a consequence of the accident.

Bottom Line

Third-party car insurance in Nigeria is not just a legal requirement but also a valuable asset that provides essential financial protection for both drivers and third parties. By covering potential liabilities, such as property damage and medical expenses, third-party insurance ensures a level of security and peace of mind for all road users. Its affordability, compliance with legal regulations, and provision of comprehensive coverage make it an indispensable safeguard for anyone navigating Nigeria’s roads.

 Frequently Asked Questions (FAQs)

Third-party insurance in Nigeria covers the insured’s liability for injuries, death, and damage to third-party property in case of accidents. It’s a mandatory insurance policy.

In an insurance policy, the first party is the person or business buying the insurance (the insured). The second party is the company providing the insurance (the insurer). The third party refers to an outside person or business making a claim for damages against the first party.

In a first-party claim, the insurance company directly pays the insured person or business. In a third-party claim, the payment goes to someone other than the insured or insurer, typically when the insured person is liable for damages. For example, if your homeowner’s insurance covers a roof repair, it’s a first-party claim. If it pays for someone’s medical bills after they slipped on your steps, it’s a third-party claim.

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Why Cozi Furniture Is The Best Place For Furniture Of Every Budget In Maryland

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Why Cozi Furniture Is The Best Place For Furniture Of Every Budget In Maryland

Furniture enhances a home’s beauty, as it tends not just to occupy space but to give it a look that exudes comfort. But there has always been a narrative that high-quality furniture comes with a high cost, as it is mostly for high-end users—this is not entirely true, as you can get furniture pieces within your budget without breaking the bank. One furniture store that is changing this narrative and making affordable, top-quality furniture available to the residents of Maryland, D.C., Virginia, and its environs is Cozi Furniture

 

Who Is Cozi Furniture?

 

Cozi Furniture is the leading furniture store in the DMV area, offering quality home furniture at affordable prices. It has a physical store in New Carrollton, Maryland, and an online store where you can conveniently shop for your furniture products. These are furniture from reputable brands like Ashley Furniture, Crown Mark, and Coaster 22 Premium.

Why Cozi Furniture Is The Best Place For Furniture Of Every Budget In Maryland

Why Cozi Furniture Is The Best Place For Furniture Of Every Budget In Maryland

Cozi Furniture offers bedroom sets, living room sets, mattresses, home office sets, dining room sets, entertainment sets, outdoor furniture, and accessories in various forms and styles.

 

What Makes Cozi Furniture The Best Furniture Store For Every Budget?

 

1. Affordable Prices

 

Cozi Furniture understands that budget is a top concern for many customers. Hence, it is committed to offering affordable prices on all the furniture pieces at its store. From sofas and loveseats to dining tables and bedroom sets, there is a wide range of furniture for every budget.

 

Notably, the furniture prices at Cozi Furniture are not what you can describe as “too good to be true” because all the products at the store are of high quality. Its furniture is made with top-quality materials and crafted with attention to detail, ensuring that every piece is stylish and durable. This makes Cozi Furniture the best place to buy furniture in Maryland.

 

2. Furniture Financing Program

 

In its bid to make high-quality furniture available to everybody, Cozi Furniture introduced a financing program called “Buy Now Pay Later” that allows you to get your preferred furniture and pay over 48 months with 0% interest. This means that you can purchase any furniture at the store without any down payment, with the opportunity to spread your payment across about four (4) years.

 

Therefore, you can get the furniture and pay monthly until you complete the payment. This flexible payment plan enables you to afford that comfy Warnerton Living Room Set or the 12-inch Ashley Hybrid King Mattress at the store.

 

3. Discounted Sales

 

Cozi Furniture is offering its furniture pieces at discounted prices. So you can save up to 23% on the furniture you buy from the store—both online and offline. For instance, the Mindanao Power Reclining Sofa that used to sell for $1,538 will be available for $1,183. This also applies to the Bolanburg Dining Set and other accessories at the store.

 

4. Return And Refund Policy

 

While Cozi Furniture upholds the sale and delivery of top-quality furniture, the company also has a return and refund plan in the event that you’re unsatisfied with the furniture delivered to you. Therefore, you can either request an exchange or ask for a refund. All these are to ensure the optimum satisfaction of its customers.

 

Cozi Furniture clearly understands the value of spending money on a product, which is why ensuring that the furniture gets a high-quality product in a good state is a greater priority.

 

Conclusion

 

Cozi Furniture is undoubtedly the ultimate destination for affordable, high-quality furniture in Maryland. The store is open to customers of every budget, and various features ensure that you create a beautiful and functional home.

 

Contact Cozi Furniture today to furnish your home with style and class.

 

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DealMakers AFRICA Recognizes Top Mergers, Acquisitions, and Dealmakers in West Africa

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DealMakers AFRICA Recognizes Top Mergers, Acquisitions, and Dealmakers in West Africa

West Africa’s most significant mergers and acquisitions, along with the financial and legal advisers behind them, have been recognised in the recently released 2024 DealMakers AFRICA Annual Awards. The awards highlight transactions that have shaped the region’s corporate landscape, acknowledging the firms and individuals driving complex deals across industries.

The DealMakers AFRICA awards are determined primarily by objective criteria, assessing the value and number of transactions recorded. However, three categories—Deal of the Year, Private Equity Deal of the Year, and Individual DealMaker of the Year—are selected based on nominations from advisory firms. These are evaluated based on factors such as deal complexity, transformational impact, and potential value creation.

DealMakers AFRICA Recognizes Top Mergers, Acquisitions, and Dealmakers in West Africa

In the West Africa Deal of the Year category, four major transactions were shortlisted. These included Olam Agri’s acquisition of Avisen, Chappal Energies’ purchase of Equinor’s Nigerian business, Renaissance Africa Energy’s acquisition of Shell Petroleum Development Company of Nigeria, and the acquisition of Flour Mills by Excelsior Shipping. The winning deal in this category was the acquisition of Shell Petroleum Development Company by Renaissance Africa Energy, a transaction that aligns with Nigeria’s broader objective of increasing local participation in the energy sector. The deal saw ownership of critical onshore assets consolidated under a consortium of Nigerian companies, reinforcing local players’ roles in the industry. PwC Nigeria, Banwo & Ighodalo, Clifford Chance, White & Case, and G. Elias served as advisers on the transaction.

For the Private Equity Deal of the Year, three deals were in contention, including CardinalStone Partners’ exit from i-Fitness to Verod, Verod and its partners’ investment in Moniepoint, and Adenia Partners’ sale of Cresta Paints to Uhuru Investment Partners. The award was given to CardinalStone Partners for its exit from i-Fitness to Verod, a deal expected to drive i-Fitness’ next growth phase through Verod’s operational expertise and financial backing. The transaction was facilitated by Rand Merchant Bank Nigeria, CardinalStone Capital Partners, Udo Udoma & Belo-Osagie, and Olaniwun Ajayi.

The Individual DealMaker of the Year award, sponsored for the second consecutive year by PSG Capital, recognised five shortlisted professionals: Akinola Akinboboye of Deloitte, Ayotunde Owoigbe of Banwo & Ighodalo, Azeezah Muse-Sadiq of Banwo & Ighodalo, Daniel Adeoye of Verod, and Yewande Senbore of Olaniwun Ajayi. The award went to Daniel Adeoye, a partner at Verod, for his role in executing high-value transactions in the region.

Adenia Partners’ acquisition of Air Liquide subsidiaries across Africa was recognised with the DealMakers AFRICA Special Recognition award. The deal spanned 12 countries across three regions, with Adenia committing up to €30 million over the next five years to strengthen and expand the newly formed entity, Erium. The transaction was advised by Decrop Consulting, Asafo & Co, Fidal Avocats, Deloitte, DPGS & Alliance Partners, and ClassM.

The awards also acknowledged the top-performing financial and legal advisory firms in West Africa’s mergers and acquisitions landscape. PwC emerged as the leading financial adviser by deal value, followed by Rand Merchant Bank Nigeria, Citigroup Global Markets, and Treadstone Resource Partners. Rand Merchant Bank Nigeria and Stanbic IBTC Capital shared the top spot for financial advisory by deal activity.

Banwo & Ighodalo was named the top legal adviser by deal value, ahead of Clifford Chance, G. Elias, and White & Case. In terms of deal flow, Banwo & Ighodalo secured the top position, followed by Olaniwun Ajayi and Herbert Smith Freehills.

For equity transactions, Stanbic IBTC Capital was ranked the top financial adviser by transaction value, while Templars led as the top legal adviser in the same category. In debt transactions, Afreximbank ranked highest by value, while Olaniwun Ajayi led in legal advisory.

DealMakers AFRICA, which launched its awards in 2000 in South Africa and expanded to the rest of the continent in 2008, continues to highlight key transactions that shape African economies. The latest rankings reflect the growing sophistication of West Africa’s mergers and acquisitions landscape, as local and international firms navigate complex deals that are reshaping industries across the region.

 

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African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

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African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The African Development Bank (www.AfDB.org) and the government of Chad have signed a grant agreement worth $44.9 million to finance the asphalting of the 49.5-kilometre Kyabé-Mayo section of the Kyabé-Singako road, including the construction of a 55-metre bridge.

The agreement was signed in N’Djamena on 19 February 2025 by Tahir Hamid Nguilin, Minister of State for Finance, Budget, Economy, Planning and International Cooperation, and Claude N’Kodia, the Bank’s Acting Representative in Chad. Several members of the Chadian government were also present, including the Minister for Infrastructure, Access-Improvement and Road Maintenance, Amir Idriss Kourda, and the Secretary of State for Finance and Budget, Ali Djadda Kampard. Also present was a delegation from the International Monetary Fund, led by its head of mission for Chad, Julien Reynaud,

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The funding will support one of the Chadian government’s key development objectives through strategic infrastructure improvement.

“The [Moyen-Chari] region, including Kyabé, Singako and Am Timan, has strong economic potential. It is Chad’s main agricultural basin and livestock area, rich in fish resources. Fish are supplied from Moyen-Chari to a large part of the country’s south and even to foreign markets,” stated Nguilin, also the Bank’s Governor for Chad.

The road project will open up southern and eastern regions of Chad, reduce vulnerability, and strengthen the resilience of local populations, especially women and young people. It will improve the transportation of goods and people between Kyabé and Singako by providing an all-weather road, facilitating the flow of agricultural and animal products from the rich areas of Moyen-Chari and Salamat to the consumer centers of Sarh, Moundou, N’Djamena and Abéché. It will also enhance accessibility to Moyen-Chari from neighboring Sudan.

The agreement paves the way for support from the Islamic Development Bank to finance the second section of the 205-kilometer Mayo-Singako-Am Timan at an estimated cost of $275.5 million.

“The African Development Bank is a strategic partner of Chad, particularly in the transport sector. The construction of the road section will reduce the overall cost of transport in Moyen-Chari […] and improve the living conditions of local people thanks to easier access to health and education facilities and to the country’s main consumer centers,” said N’Kodia.

The Kyabé-Mayo section of the Kyabé-Singako road is one of the missing links in the N’Djamena-Moundou-Sarh-Kyabé-Am Timan-Abéché corridor and forms part of the priority structuring network that the Chadian government aims to develop to ensure nationwide coverage and permanent accessibility.

The African Development Bank Group remains a strategic financial partner for Chad, with its strategy paper focusing on two priority pillars: developing infrastructure to achieve strong and diversified economic growth and promoting good governance to increase the effectiveness of public action and the attractiveness of the economic environment.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).
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