NAICOM Declares ECOWAS Brown Card Automatic for All Motor Insurance Policies

If you buy or renew your motor insurance policy in Nigeria from now on, your insurer must automatically provide you with an ECOWAS Brown Card at no extra cost.

That is the implication of a new directive issued by the National Insurance Commission (NAICOM), which requires every insurance company to include the regional motor insurance cover as part of every Third-Party and Comprehensive Motor Insurance policy issued in the country.

The directive, signed by Olugbenga Jaiyesimi, Deputy Director, Market Conduct and Complaints Bureau, on behalf of the Commissioner for Insurance, and released on Monday, takes immediate effect.

The Commission said the move is in line with Section 103 of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, adding that the automatic inclusion of the ECOWAS Brown Card “is a statutory requirement.”

What changes for motorists?

Previously, many motorists who intended to drive beyond Nigeria’s borders had to make separate arrangements to obtain an ECOWAS Brown Card, the regional insurance certificate recognised across participating West African countries.

Under the new directive, that process disappears.

According to NAICOM, “Every motor insurance policy issued or renewed in Nigeria… shall automatically be accompanied by a valid ECOWAS Brown Card.”

In simple terms, motorists will no longer need to fill out separate forms or request the document after purchasing motor insurance.

The Commission also made it clear that insurers cannot ask customers to pay an additional fee for the card.

It stated that “No insurer shall require any person to make a separate application or request for a separate payment for the issuance of the ECOWAS Brown Card.”

Why NAICOM is doing this

The directive is aimed at making access to the ECOWAS Brown Card seamless while ensuring every eligible motor insurance policy automatically provides regional third-party liability protection.

For Nigerians who travel by road to neighbouring countries such as Benin Republic, Togo, Ghana or other participating ECOWAS states, the Brown Card serves as recognised proof of motor insurance and facilitates the settlement of third-party claims arising from road accidents across borders.

By making the card automatic, NAICOM is seeking to eliminate administrative bottlenecks and improve compliance with Nigeria’s obligations under the ECOWAS Brown Card Scheme.

What insurance companies must do

The directive is not just about issuing another document.

Insurance companies have been instructed to modify their systems so that every time a motor insurance policy is generated, an ECOWAS Brown Card is produced simultaneously.

NAICOM said “all insurers shall ensure that their underwriting, policy administration, and digital insurance platforms are configured to automatically generate Ecowas Brown Card upon the issuance of motor insurance policies.”

The Commission also wants insurers to include the Brown Card number on every motor insurance certificate and notify policyholders that they are entitled to the regional cover.

In addition, insurers must now report the number of Brown Cards issued as part of their quarterly returns to the regulator, giving NAICOM greater visibility into industry compliance.

Non-compliance attracts sanctions

NAICOM warned that companies that fail to comply with the directive will face regulatory action.

According to the Commission, “Any failure to comply with any of these requirements shall constitute a breach of regulatory requirements and shall be subject to administrative sanctions.”