In a breakthrough for the Nigerian economy, the West African country’s real estate sector has officially surpassed its energy counterpart to become the third-largest contributor to the domestic GDP. According to the rebased GDP figures, released in August 2025, the property sector now accounts for a substantial 10.7% of total GDP, a significant jump from its previous contribution of 6.2%.
Complementing this, the construction sector now contributes 5.2% of the total GDP. Combined, these two interconnected sectors collectively represent an impressive 15.9% of Nigeria’s GDP, up from the previous 12.4%. This monumental growth reflects the widespread expansion of housing activities, from rapid urban development to critical infrastructure projects, firmly establishing the sector’s escalating influence on national economic growth and stability.
As the sector thrives, property insurance has emerged as more than a legal requirement. It has now become a strategic pillar of investment protection and professional valuation. The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has reshaped the regulatory framework, mandating insurance coverage for public buildings and construction projects, while elevating the role of estate surveyors and valuers in the insurance value chain.
NIIRA 2025 requires builders’ liability insurance for all construction projects, ensuring coverage against damages to both life and property. Under Section 76, annual insurance will be mandated for public buildings, including tenement houses, hostels, and facilities used for education, healthcare, recreation, or commerce against risks such as fire, flood, and collapse. Penalties for non-compliance include heavy fines or imprisonment for up to three years.
For real estate investors, these provisions now provide financial resilience instead of just legal protection. Insured properties will be better equipped to endure disasters, while also attracting both tenants and financing. Risks can be turned into opportunities, strengthening property portfolios and making them more future-proof.
Estate surveyors and valuers will play a central role in this transformation. NIIRA 2025 requires professional valuation as a must for insurance coverage, recognising the expertise of valuers in determining reinstatement costs, fair indemnity values, and risk exposure. Accurate valuation will ensure that properties are neither underinsured nor overinsured, safeguarding insurers and policyholders.
Section 58 of the Act further mandates actuarial valuation and reporting, reinforcing the importance of precise property valuation in determining insurance liabilities and premiums. Valuers will transform from consultants to strategic partners in risk management.
The Act also encourages digital innovation and broader insurance penetration, opening new avenues for valuers to collaborate with tech platforms and expand their reach. As the industry embraces digitisation, professionals who adapt will lead the way in creating a more transparent and efficient insurance ecosystem.
NIIRA 2025 has perfectly positioned property insurance as a proactive strategy for securing Nigeria’s real estate future. For investors, it offers legal protection and financial stability. For estate surveyors and valuers, it unlocks new professional frontiers and reinforces their indispensable role in the built environment. Insurance will become a catalyst for growth, credibility, and resilience.