The Nigeria Insurance Industry Reform Bill, 2024 is set to reshape the nation’s real estate sector by embedding insurance into every phase of the property lifecycle—planning, construction, occupancy, and investment funding.
From mandatory builders’ liability to giving insurers the green light to fund real estate projects, the law is more than an industry update—it’s a catalyst for safer assets, stronger balance sheets, and increased investor confidence.
Key Provision Highlight: Compulsory Insurance for Buildings Under Construction
- Sections: 75(1)–(3), (7)
- What it means: Before construction begins, owners or contractors must secure a builders’ liability policy covering death, injury, and third-party property damage—including collapse—arising from building activities. Building control authorities must verify this coverage before granting project approval.
- Why it matters: This makes insurance a non-negotiable line item in development budgets, ensuring projects are protected from financial ruin caused by uninsured accidents or disasters.
Insurers as Real Estate Investors
The Bill also paves the way for insurers to invest directly in real estate developments. This could deepen capital inflows into the property market, enhance liquidity, and boost trust among both local and foreign investors.
The Bottom Line
While compliance and cost could present challenges, the Bill positions insurance as a cornerstone of Nigerian real estate. By mandating coverage and unlocking new investment streams, it has the potential to create a more secure, financially resilient property market.
For more on Nigeria’s evolving property regulations, check out our article on How the 2025 Building Code Will Change Construction Standards.
