Key Insurance Reforms for the Construction, Real Estate, and Oil and Gas Sectors under the Nigeria Insurance Industry Reform Act 2025

The Nigeria Insurance Industry Reform Act 2025 (“NIIRA” or the “Act”) marks a landmark overhaul of Nigeria’s insurance framework. Replacing earlier legislation, the Act embeds insurance requirements into critical stages of property development, from planning and construction through to occupancy and investment.

This reform is particularly significant for the construction, real estate, and oil and gas sectors, where insurance now plays a pivotal role in risk management and regulatory compliance.

Why It Matters
The Act grants regulators new enforcement powers and raises the consequences of non-compliance. These provisions mean that stakeholders, whether real estate developers, contractors, builders, tenants, or property owners, must factor insurance into their operations at a much earlier stage than before.

Sectoral Implications

• Construction & Real Estate: Insurance is now mandatory at the planning and development stages, creating stronger safety nets for investors, developers, and occupants alike.
• Oil & Gas: Operators face enhanced obligations to embed insurance into operations, with stricter penalties for lapses that could expose the public or environment to harm.
• The Wider Public: Tenants and property owners are better protected as risk allocation becomes clearer and more enforceable.

Looking Ahead
The NIIRA’s reforms aim to strengthen investor confidence, reduce systemic risk, and align Nigeria’s insurance practices with international standards. For industry players, compliance is no longer optional; it is a legal and commercial necessity.

Read more>>