️ NIIRA 2025: The Game-Changing Insurance Law Reshaping Nigeria’s Risk Landscape
Detailed Breakdown:
In a major policy milestone, President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025, ushering in the most comprehensive overhaul of Nigeria’s insurance sector in decades. The new law, which aligns with the Federal Government’s $1 trillion economic growth target, expands the scope of compulsory insurance — affecting individuals, businesses, and government agencies alike.
At its core, NIIRA 2025 seeks to protect lives, property, and investments through mandatory coverage in key sectors such as construction, petroleum, public buildings, healthcare, aviation, and credit finance.
️ 1. Compulsory Insurance for Buildings Under Construction
Under Section 75, no multi-storey building project can begin without an insurance policy covering risks of bodily injury or death to workers or the public caused by negligence during construction.
✅ Timing: Insurance must be obtained immediately after building plan approval, before construction starts.
⚠️ Penalty for default: ₦5 million fine, 12 months imprisonment, or both.
2. Public Building Insurance Now Mandatory
Section 76 mandates insurance for public buildings — including hostels, tenement houses, hospitals, schools, and offices — against risks like fire, flood, collapse, and earthquake.
Landlords and occupiers must insure their buildings, covering liability for injury, death, or property damage to users and third parties.
️ Every insurer must also contribute 0.25% of premiums to a Fire Services Maintenance Fund, which will support firefighting services nationwide.
Defaulting insurers face 10x penalties or license cancellation.
⛽ 3. Mandatory Cover for Petroleum & Gas Stations
Section 78 requires all petroleum and gas stations and transporters to insure against third-party losses from fire or explosions.
Proof: The insurance certificate must be visibly displayed at the station or attached to transport documents.
⚠️ Penalty: ₦1 million fine, two years imprisonment, or both.
4. Health Sector Inclusion
Healthcare providers are now required to maintain professional indemnity insurance — protecting patients from malpractice or negligence.
Hospitals must display their insurance certificate in their offices for public visibility.
✈️ 5. Aviation Operators Brought Under the Net
NIIRA mandates that airlines, aerodrome operators, ground handlers, and aviation fuel suppliers maintain adequate insurance to cover third-party liabilities.
This ensures victims of air-related accidents or negligence are compensated promptly.
6. Motor and Credit Life Insurance Reforms
• Third-Party Motor Insurance: All fee-paying passengers are now automatically insured against death or injury.
• Credit Life Insurance: Borrowers taking loans above ₦10 million must have insurance covering outstanding balances in case of death or permanent disability. The cost of this insurance must be clearly disclosed, and the lender is designated as the beneficiary.
7. Extending Protection Beyond Borders
NIIRA reaffirms Nigeria’s commitment to the ECOWAS Brown Card Insurance Scheme, ensuring regional motor accident victims receive cross-border coverage across West Africa.
8. Stronger Enforcement Powers for NAICOM
One of the most striking provisions gives NAICOM (National Insurance Commission) the authority to seal any public building that lacks valid insurance coverage — a move analysts say will drastically improve compliance and safety.
Stakeholder Reactions
NAICOM hailed the Act as a “renewed push toward growth,” but acknowledged that enforcement has been historically weak. The new law, it said, introduces mechanisms to make compliance non-negotiable.
Investment firm United Capital described NIIRA 2025 as “a positive shift for Nigeria’s economy”, noting that it expands the insurance base, strengthens risk management, and supports Nigeria’s trillion-dollar economy ambition.
Bottom Line:
With NIIRA 2025, insurance will no longer be optional or overlooked. The law embeds risk protection, accountability, and transparency into every aspect of Nigeria’s socio-economic framework — from buildings and fuel stations to healthcare and aviation.
The big takeaway?
Insurance is no longer just paperwork — it’s now a passport to operate in Nigeria’s new economy. ️
Detailed Breakdown:
In a major policy milestone, President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025, ushering in the most comprehensive overhaul of Nigeria’s insurance sector in decades. The new law, which aligns with the Federal Government’s $1 trillion economic growth target, expands the scope of compulsory insurance — affecting individuals, businesses, and government agencies alike.
At its core, NIIRA 2025 seeks to protect lives, property, and investments through mandatory coverage in key sectors such as construction, petroleum, public buildings, healthcare, aviation, and credit finance.
️ 1. Compulsory Insurance for Buildings Under Construction
Under Section 75, no multi-storey building project can begin without an insurance policy covering risks of bodily injury or death to workers or the public caused by negligence during construction.
✅ Timing: Insurance must be obtained immediately after building plan approval, before construction starts.
⚠️ Penalty for default: ₦5 million fine, 12 months imprisonment, or both.
2. Public Building Insurance Now Mandatory
Section 76 mandates insurance for public buildings — including hostels, tenement houses, hospitals, schools, and offices — against risks like fire, flood, collapse, and earthquake.
Landlords and occupiers must insure their buildings, covering liability for injury, death, or property damage to users and third parties.
️ Every insurer must also contribute 0.25% of premiums to a Fire Services Maintenance Fund, which will support firefighting services nationwide.
Defaulting insurers face 10x penalties or license cancellation.
⛽ 3. Mandatory Cover for Petroleum & Gas Stations
Section 78 requires all petroleum and gas stations and transporters to insure against third-party losses from fire or explosions.
Proof: The insurance certificate must be visibly displayed at the station or attached to transport documents.
⚠️ Penalty: ₦1 million fine, two years imprisonment, or both.
4. Health Sector Inclusion
Healthcare providers are now required to maintain professional indemnity insurance — protecting patients from malpractice or negligence.
Hospitals must display their insurance certificate in their offices for public visibility.
✈️ 5. Aviation Operators Brought Under the Net
NIIRA mandates that airlines, aerodrome operators, ground handlers, and aviation fuel suppliers maintain adequate insurance to cover third-party liabilities.
This ensures victims of air-related accidents or negligence are compensated promptly.
6. Motor and Credit Life Insurance Reforms
• Third-Party Motor Insurance: All fee-paying passengers are now automatically insured against death or injury.
• Credit Life Insurance: Borrowers taking loans above ₦10 million must have insurance covering outstanding balances in case of death or permanent disability. The cost of this insurance must be clearly disclosed, and the lender is designated as the beneficiary.
7. Extending Protection Beyond Borders
NIIRA reaffirms Nigeria’s commitment to the ECOWAS Brown Card Insurance Scheme, ensuring regional motor accident victims receive cross-border coverage across West Africa.
8. Stronger Enforcement Powers for NAICOM
One of the most striking provisions gives NAICOM (National Insurance Commission) the authority to seal any public building that lacks valid insurance coverage — a move analysts say will drastically improve compliance and safety.
Stakeholder Reactions
NAICOM hailed the Act as a “renewed push toward growth,” but acknowledged that enforcement has been historically weak. The new law, it said, introduces mechanisms to make compliance non-negotiable.
Investment firm United Capital described NIIRA 2025 as “a positive shift for Nigeria’s economy”, noting that it expands the insurance base, strengthens risk management, and supports Nigeria’s trillion-dollar economy ambition.
Bottom Line:
With NIIRA 2025, insurance will no longer be optional or overlooked. The law embeds risk protection, accountability, and transparency into every aspect of Nigeria’s socio-economic framework — from buildings and fuel stations to healthcare and aviation.
The big takeaway?
Insurance is no longer just paperwork — it’s now a passport to operate in Nigeria’s new economy. ️