Nigeria Insurance Reform Act 2025 Set to Strengthen Real Estate Sector, Boost Investor Confidence
The recently enacted Nigeria Insurance Industry Reform Act 2025 is projected to significantly transform the country’s real estate market by enhancing asset protection, improving financing readiness, and reinforcing investor confidence. The development was highlighted during a sector-focused webinar organised by the International Real Estate Federation (FIABCI) Nigeria, themed “The Nigeria Insurance Industry Reform Act 2025: What compulsory property insurance means for real estate professionals.”
Compulsory Insurance Compliance Across Real Estate Assets
Frank Egona, CEO of Grand Union Insurance Brokers Limited, explained that the Act introduces a new regulatory framework mandating compulsory insurance for public and private assets across the real estate ecosystem. All buildings above one floor must now be insured, with penalties for non-compliance including a minimum fine of ₦1 million, a 12-month jail term, or both.
The legislation applies broadly to residential and commercial properties, including offices, shopping malls, schools, hospitals, rented apartments, and government facilities. Construction sites and oil and gas infrastructure are similarly required to adhere to the new insurance obligations.
Expanding the Role of Real Estate Valuers
Egona noted that the law will generate recurring demand for professional valuation services. Registered valuers must conduct assessments covering reinstatement cost, indemnity, market value, and depreciation before any public building is insured.
“This provision creates an ongoing need for accurate valuations, documentation, and advisory support for developers, landlords, and investors alike,” Egona said. He emphasised the importance of ongoing training and certification to ensure compliance with the expanded regulatory requirements.
Streamlined Claims and Investor Protection
The Act sets a maximum 60-day window for insurers to settle claims, strengthening consumer protection and providing clarity for property owners. Insurance companies are now authorised to invest more directly in real estate development, while a policyholders’ protection fund has been established to safeguard public interest.
According to Babatunde Oguntade, former President of the Nigerian Council of Registered Insurance Brokers (NCRIB), the law introduces a structured and enforceable claims process. Real estate professionals are encouraged to insure properties under their management to fully leverage the legislation’s benefits.
Strategic Implications for the Real Estate Sector
Adeniji Adele, President of FIABCI Africa and Near East, represented by FIABCI-Nigeria Vice President Ayodeji Odeleye, stressed that the Act is more than regulatory reform; it is a strategic enabler for the real estate sector. By mandating compliance and imposing enforceable penalties, the legislation promotes risk assessment, strengthens project viability, and reduces financial exposure.
He highlighted that recurring incidents such as building collapses, fire outbreaks, and other infrastructure failures underscore the urgent need for compulsory property insurance to protect investments and safeguard communities.
Forward-Looking Impact
The Nigeria Insurance Industry Reform Act 2025 is expected to professionalise property risk management and drive investor confidence across the real estate ecosystem. Experts predict that compliance will lead to improved access to financing, greater transparency in asset management, and a stronger alignment between insurance and real estate development in Nigeria.
By mandating insurance coverage, the Act ensures that real estate projects are protected against unexpected losses, creating a more resilient and attractive investment landscape for both local and international stakeholders.
