The Nigerian Insurance Industry Reform Act (NIIRA), recently signed into law by President Bola Ahmed Tinubu, now makes it mandatory for all petroleum and gas refilling stations, as well as vehicles transporting these products, to have third-party insurance against losses arising from accidental fire or explosion.
According to details released by the National Insurance Commission (NAICOM), failure to comply attracts a minimum fine of N1 million or a two-year jail term for station owners. Section 75 of the NIIRA also requires petroleum and gas stations to display their insurance certificate prominently, while transporters must include proof of insurance in their documentation.
The law further increases penalties for non-compliance with compulsory insurance for owners and occupiers of public buildings, raising fines from N100,000 to at least N1 million, and maintaining the option of imprisonment for up to 12 months.
NAICOM said the reforms are aimed at strengthening consumer protection, promoting safety in high-risk sectors, and boosting insurance penetration in Nigeria.
