Experts have expressed strong optimism that the Nigeria Insurance Industry Reform Act 2025 will transform the real estate landscape by improving asset attractiveness, enhancing financing readiness and boosting investor confidence.
They spoke at a webinar titled “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.
Chief Executive Officer, Grand Union Insurance Brokers Limited, Frank Egona, who delivered a paper on Understanding Compulsory Building and Property Insurance Requirements, said the Act underscores the need for heightened awareness among real estate stakeholders on compliance obligations.
Under the new law, failure to insure any public building of more than one floor attracts a minimum fine of N1 million, a 12-month jail term, or both.
Egona noted that the Act significantly strengthens compulsory insurance provisions for public buildings, construction projects, government assets and oil and gas facilities. It also covers residential buildings, malls, offices, hospitals, schools, commercial properties and rented apartments.
He said the Act provides fresh opportunities for valuers and real estate professionals, as insurance valuation services will now broaden in scope. Unlike the former regime, where insurance was optional for many categories of property, the new Act mandates comprehensive coverage against fire, collapse, flood, storm, malicious damage and other risks.
“Valuation now includes reinstatement cost, indemnity and market value for insurance purposes. Registered valuers are well-positioned to deliver these services. Before a public building is insured, a professional valuer must assess it, and a valuation report must be produced showing current market value, depreciation and other metrics,” he said.
Egona added that valuers and estate professionals would enjoy recurring demand for periodic valuations, documentation support and advisory services for developers, landlords and property investors. He stressed ongoing professional training, workshops and certification as essential to meet the new compliance requirements.
The Act also sets a maximum 60-day deadline for insurers to settle claims, protects policyholders from undue delays, and enables insurance firms to invest in real estate development, including establishing a policyholders’ protection fund.
On premiums, Egona explained that charges will be tied to property value, saying valuations must now capture construction value, reinstatement value and depreciation.
Immediate past President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Babatunde Oguntade, said the Act provides long-awaited clarity by establishing robust consumer protection procedures and defined claims processing timelines. He urged real estate professionals to procure insurance on properties under their management to leverage the Act’s opportunities.
President of the FIABCI Africa and Near East, Adeniji Adele, represented by the Vice President, FIABCI-Nigeria, Ayodeji Odeleye, said real estate professionals now have a clear responsibility to ensure that all transactions, development proposals and property management portfolios comply with the law.
He stressed that non-compliance now carries enforceable penalties, making risk awareness and proper documentation indispensable. According to him, the legislation offers more than regulatory compliance; it presents a strategic opportunity to boost investor confidence, strengthen project viability and reduce financial risks.
Adele added that recurrent issues such as building collapse, fire outbreaks, infrastructure failures and various hazards underline the urgency of insurance compliance to safeguard investments and prevent losses across the real estate sector.
