New Industry Act Mandates Insurance for Gas Stations, Public Buildings, Others

President Bola Ahmed Tinubu recently signed the Nigerian Insurance Reform Act (NIIRA), which mandates insurance for gas stations, public buildings, and other entities. Gas stations must now be insured against losses resulting from unintentional fires or explosions, with owners facing jail time if they fail to comply.

Public building owners must also maintain insurance coverage for various hazards, with penalties including fines of at least N1 million and imprisonment for up to one year. The law also requires insurance policies to cover legal liabilities for property damage, bodily injury, or death.

Insurers failing to pay the required percentage to the Fire Services Maintenance Fund may face penalties, including license revocation. NAICOM has also cautioned insurers to establish Special Reserves and meet capital solvency requirements to avoid license revocation.

The industry has welcomed two new insurance licenses issued by NAICOM.