ABUJA, Nigeria – Hospitals and other public buildings in Nigeria must now obtain compulsory insurance cover or face stiff penalties, the National Insurance Commission (NAICOM) has announced.
The mandate, contained in the newly enacted Nigerian Insurance Industry Reform Act, enforces insurance against risks such as building collapse, fire, earthquakes, storms, and flooding.
Non-compliance attracts a minimum fine of ₦1 million, a custodial sentence of up to 12 months, or both, for hospital management and building occupiers.
In a statement issued Monday, NAICOM clarified that public buildings—including hospitals, schools, malls, and recreational centres—fall under the new regulation.
The Act requires insurance policies to cover not only property but also legal liabilities for injuries, fatalities, or damages sustained by users and third parties.
“Every hospital must secure comprehensive insurance cover to safeguard patients, staff, and visitors against unforeseen risks,” NAICOM said. “This is a crucial step towards safety and accountability in Nigeria’s healthcare system.”
The law further mandates insurers to remit 0.25% of net premiums quarterly to a Fire Services Maintenance Fund, designed to support firefighting equipment and grants. Insurers who default face fines up to ten times the required sum or risk losing their operating licence.
NAICOM also has new powers to seal uninsured hospitals and other public premises deemed hazardous. “Uninsured hospitals pose a significant risk to public safety, and we will enforce compliance to protect lives and property,” the Commission warned.
The Act extends beyond healthcare, making insurance compulsory for federal assets, employees, and petroleum facilities, with strict sanctions for violations.
