Driving licences due to expire between March and August this year are to be extended by seven months.
Services are operating at reduced capacity because of measures to prevent the spread of Covid-19.
The system is also experiencing a spike in demand since resuming operations so the Department of Transport has pushed out the expiry dates.
In addition, the exemption from having a medical report for those aged 70 and over is also being moved out to the end of the year.
Minister Naughton said: “It is important that we continue to take the necessary measures which have the health and safety of our drivers and that of the staff of the National Driver Licence Service (NDLS) at its core.
"This latest extension will also go a long way in allaying concerns that many drivers may be facing delays in renewing their licence.
"The NDLS, in line with many other state agencies, has seen an increased demand for its services since resuming operations following its temporary closure due to the COVID emergency."