Landlords and occupiers of public buildings across Nigeria now face a ₦1 million fine, a 12-month jail term, or both, if they fail to insure their properties against hazards. This is according to the newly signed Nigerian Insurance Industry Reform Act.
The law mandates that all public buildings must be insured against risks such as building collapse, fire, earthquakes, storms, floods, and other hazards as may be determined by the National Insurance Commission (NAICOM).
Read more about NAICOM’s insurance compliance guidelines here.
What Qualifies as a Public Building?
Section 76 (6) of the Act defines public buildings to include:
- Tenement houses with more than one floor.
- Hostels.
- Buildings occupied by tenants, lodgers, or licensees.
- Any structure accessible to the public for education, healthcare, recreation, or business transactions.
This means landlords of apartment complexes, student hostels, schools, hospitals, shopping malls, and office buildings must comply with the mandatory insurance requirement.
Why This Law Matters
Beyond protecting lives and properties, the Act requires insurance policies to cover legal liabilities of landlords and occupiers for:
- Bodily injuries.
- Death.
- Property damage suffered by users of the premises or third parties.
This move is expected to strengthen Nigeria’s housing safety standards and reduce the financial burden on victims in the event of building-related disasters.
Learn more about how this reform may impact Nigeria’s real estate market on our Property Media Week housing updates section.
Implications for Real Estate Investors & Landlords
For property investors, this reform emphasizes the importance of risk management in real estate. Insurance is no longer optional but a legal requirement. Non-compliance could lead to huge financial losses and reputational damage.
Related reading: The Future of Real Estate in Abuja – Opportunities and Risks
