Experts have projected that the Nigeria Insurance Industry Reform Act 2025 will significantly reshape the country’s real estate market by strengthening asset protection, improving financing readiness and increasing investor confidence.
This was the consensus at a webinar themed “The Nigeria Insurance Industry Reform Act 2025: What compulsory property insurance means for real estate professionals,” organised by the International Real Estate Federation (FIABCI) Nigeria in Lagos.
Speaking at the event, Frank Egona, Chief Executive Officer of Grand Union Insurance Brokers Limited, explained that the Act introduces a new era of compulsory insurance compliance across the real estate ecosystem. He noted that failure to insure any public building above one floor now attracts a minimum fine of ₦1 million, a 12-month jail term, or both.
Egona highlighted that the Act expands compulsory insurance coverage to a wide range of assets, including residential properties, offices, shopping malls, hospitals, schools, commercial complexes and rented apartments. It also strengthens requirements for government assets, construction sites and oil and gas infrastructure.
According to him, the new law provides a major opening for real estate valuers and professionals, as insurance valuation services will now broaden in scope. Every public building must undergo a professional valuation, covering reinstatement cost, indemnity, market value and depreciation.
He said:
“Before a public building is insured, a registered valuer must assess it and issue a certified valuation report. This creates recurring demand for valuations, documentation and advisory support for landlords, developers and investors.”
Egona emphasised that ongoing training, certification and professional development will be crucial for valuers to keep up with the Act’s expanded compliance requirements.
The Act also mandates a maximum 60-day window for insurers to settle claims, strengthens consumer protection, and authorises insurance companies to invest more directly in real estate development. A policyholders’ protection fund has also been established to safeguard public interest.
In his remarks, Babatunde Oguntade, former President of the Nigerian Council of Registered Insurance Brokers (NCRIB), said the law finally introduces clarity and structure into claims processing, adding that real estate professionals must now insure properties under their management to take advantage of the law’s benefits.
Also speaking, Adeniji Adele, President of FIABCI Africa and Near East—represented by the Vice President of FIABCI-Nigeria, Ayodeji Odeleye—stated that the Act imposes clear compliance obligations on all real estate transactions and property management operations. He noted that enforceable penalties make risk assessment and documentation essential.
According to Adele, the legislation is more than a regulatory reform; it is a strategic pathway to increased investor confidence, stronger project viability and reduced financial exposure.
He added that recurring issues such as building collapse, fire incidents, infrastructure failures and other hazards highlight the urgent need for compulsory insurance to protect investments and prevent widespread losses across the real estate sector.
