Insurance, long overlooked by many Nigerians, is now a non-negotiable aspect of the real estate sector. Government and regulatory mandates have made it a central requirement for property owners, developers, tenants, and estate managers. The landscape in 2025 shows that compliance dictates permit approvals, financing, and overall project security.
The scope of compulsory insurance is extensive. For construction, Contractors All Risks (CAR) and Builders Liability Insurance for structures over two floors are mandatory. For completed buildings, public-access properties must be insured against hazards like fire and collapse. Employers must also provide group life cover for their staff.
Gbenga Salako Davis of Hazelcrest Property confirms this shift, stating, “The government and industry regulators have made insurance a key requirement.” He emphasises that this is “no longer optional,” affecting everyone who “build houses, manage estates, rent apartments, or apply for building permits.”
The impact on stakeholders is profound. Davis notes that these policies now “determine how quickly building permits are approved, whether banks grant financing, and how secure tenants and workers feel.” He asserts that “insured projects inspire greater confidence among banks and investors, making financing easier to access and sustain.”
For his firm, the new reality requires a proactive approach. “At Hazelcrest Property, we work with landlords, developers, and tenants to navigate these new requirements and secure the right protection,” Davis says. He advises that stakeholders must “adjust their practices,” explaining that “landlords and property owners are expected to insure their buildings,” while “developers and contractors must include insurance in project budgets.”
He also highlights a critical verification step, warning that “to prevent fraud, all policies should be verified through the Nigerian Insurance Industry Database (NIID).”
Ultimately, Davis believes these enforced measures are reshaping the sector for the better. “With compulsory insurance enforcement, building sites and completed properties are becoming safer,” he says, adding that “tragedies such as building collapses are being reduced, and confidence in the market is growing.”
While acknowledging the added costs, he concludes that “the long term benefits far outweigh the initial burden by ensuring sustainability, compliance, and security for all stakeholders.” He affirms that “in today’s Nigeria, insurance is no longer just paperwork. It represents protection, opportunity, and a vital key to sustainable real estate growth.”
