The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has introduced sweeping measures to improve safety across the petroleum sector. From now on, all petroleum tankers, gas refilling stations, and related installations must carry insurance against third-party losses.
Failure to comply attracts a fine of at least ₦1 million, a minimum of two years’ imprisonment, or both. This provision aims to reduce the devastating human and economic costs of frequent tanker explosions and depot fires.
Significantly, data from the National Emergency Management Agency (NEMA) reveals that in the past decade alone, Nigeria has recorded more than 6,000 tanker accidents, which claimed over 62,000 lives and destroyed property worth billions of naira.
Under Section 78 of the Act, the requirements are clearly outlined:
- First, all petroleum and gas refilling stations must obtain insurance cover against fires or explosions.
- Next, tankers transporting petroleum and gas must secure third-party insurance.
- Furthermore, the product owner or station operator bears direct responsibility for ensuring coverage.
- Finally, operators must display a valid insurance certificate at refilling stations or include it in transit documents.
By making insurance compulsory, the NIIRA closes a critical gap that has long left victims uncompensated. In addition, it shifts accountability to operators and product owners, aligning Nigeria’s energy logistics with international safety standards.
Although analysts caution that compliance may raise operating costs for marketers and independent station owners, they also emphasize its long-term benefits. For instance, the reform guarantees victim compensation, reduces pressure on emergency agencies, and enhances stability in the downstream petroleum sector.
Meanwhile, regulators have confirmed that enforcement will begin immediately. Agencies and security operatives will conduct inspections on highways and at filling stations, ensuring violators face swift penalties.
Ultimately, with the NIIRA 2025 now in force, the government seeks to protect lives, enforce accountability, and make insurance a non-negotiable safeguard in Nigeria’s petroleum supply chain.