Landlords Risk ₦1m Fine or Jail for Uninsured Buildings — But Who Really Pays the Price?

On August 6, 2025, President Bola Ahmed Tinubu signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a sweeping national law designed to modernize Nigeria’s insurance sector. This landmark Act applies nationwide and introduces key reforms, including:

• Consolidated Legal Framework: Repeals older laws, creating one modern framework for all insurance and reinsurance businesses.

• Enhanced Market Stability: Raises capital requirements for insurers to attract foreign investment and strengthen the sector.

• Consumer Protection: Introduces policyholder protection funds and tighter claims settlement deadlines for faster payouts.

• Digitisation: Mandates digital transformation of insurance processes to modernise operations and improve efficiency.

• Increased Insurance Penetration: Seeks to raise Nigeria’s very low insurance adoption by making the sector more secure and attractive to consumers.

What This Means for Property Owners

One of the strongest enforcement angles of NIIRA 2025 is on compulsory policies, including building insurance. Landlords and occupiers of public buildings now face penalties of up to ₦1 million, 12 months in prison, or both if they fail to insure their properties. Repeat offenders could face even harsher fines — up to ten times the required premium — and even risk the cancellation of business licenses.

For residents of Lagos, Abuja, and across Nigeria, the law promises:

• Modernised services thanks to digitisation.

• Greater security via policyholder protection funds.

• Broader access to new insurance products.

• Stronger enforcement of existing compulsory insurance policies.

The Other Side of the Coin

While these reforms aim to make the sector safer, more efficient, and more attractive to investors, there’s a potential downside: ordinary tenants may bear the cost.

Many landlords are unlikely to absorb the extra expense of insurance. Instead, the costs will be passed down in the form of higher rent prices, further straining affordability in a housing market where many Nigerians already struggle.

So while NIIRA 2025 brings progress and protection to the insurance sector, it also risks creating adverse effects where the masses suffer more — turning what was meant as a safeguard into another financial burden.

The Big Question

Insurance is essential. It protects lives, secures property, and builds trust in the housing market. But when compliance leads to rising costs for tenants, we must ask:

👉 Is this law a necessary safeguard for Nigeria’s future — or an added burden that will hurt the very people it’s meant to protect?