A new law signed by President Bola Ahmed Tinubu requires all petroleum and gas stations, as well as vehicles transporting these products, to have insurance coverage against third-party losses from accidental fires or explosions.

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 was officially released by the National Insurance Commission (NAICOM).

Under the law, owners of uninsured petroleum and gas stations face a two-year jail term. Section 75 states that these businesses must maintain insurance against third-party losses from fire or explosion.

A copy of the insurance certificate must be displayed at filling stations or included in transport documents. Violators may be fined at least N1 million or imprisoned for two years.

The law also increases penalties for owners and occupiers of uninsured public buildings. Previously, offenders faced a N100,000 fine or one-year imprisonment.

Now, the penalty is at least N1 million or up to 12 months in jail. Section 76 mandates insurance coverage for public buildings against collapse, fire, earthquake, storm, flood, and other hazards determined by NAICOM.

Insurance companies must pay 0.25 percent of their quarterly net premiums into a Fire Services Maintenance Fund. Those failing to comply may be fined up to 10 times the amount due.

Additionally, the law addresses delayed insurance claims. Section 8 states that insurers with five or more verified complaints of unpaid claims risk losing their license. NAICOM will enforce these provisions to ensure compliance.

The reforms aim to improve safety and financial protection for businesses and the public. NAICOM has urged immediate compliance to avoid penalties.

Source: The Nation