NIIRA 2025: Uninsured petroleum tanker, filling station owners face imprisonment

By Rosemary Iwunze  

At the backdrop of  frequent losses of lives and property to petroleum tanker fires, the immediate implementation of the Nigerian Insurance Industry Reform Act, NIIRA, 2025 has mandated all petroleum tankers plying the highways to get insured against third party losses going forward.

Also, all petroleum and gas refilling stations and installations must similarly be insured. The NIIRA stipulates that any person who fails to comply with the law is liable on conviction to a fine of at least N1,000,000 or a minimum term of two years imprisonment or both.  

According to the National Emergency Management Agency (NEMA), over 6,000 tanker accidents have occurred in Nigeria in the past decade, claiming over 62,000 lives.

Section 78(1) of the NIIRA stated: “All petroleum and gas refilling stations and installations shall be insured against third-party losses occasioned by accidental fire outbreak or explosion.

“(2) All vehicles transporting petroleum and gas products shall be insured against third party losses occasioned by accidental fire outbreak or explosion.

“(3) The responsibility of the cover referred to in subsections (1) and (2) shall be on the owner of the petroleum and gas products in transit, or owner or operator of the relevant refilling station as the case may be.  (4) A copy of certificate of insurance that meets the minimum requirement shall be displayed in a conspicuous location at the refilling station or included in the documents covering the petroleum and gas products in transit as the case may be.

“(5) A person who fails to comply with subsections (1), (2) and (3) is liable on conviction to a fine of at least N1,000,000 or a minimum term of two years imprisonment or both. 

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