The National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have endorsed the Lagos State Government’s compulsory Building Insurance Scheme, describing it as a major step toward protecting lives, properties, and investments against risks such as fire, flooding, and building collapse. The initiative is expected to strengthen compliance with existing insurance laws while improving public confidence in the insurance sector.
Speaking at the launch of the scheme in Lagos, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said effective implementation would help reduce financial losses arising from disasters and ensure that affected property owners receive timely compensation. He stressed that insurers must prioritise prompt claims settlement to build public trust and encourage wider adoption of building insurance.
The compulsory insurance scheme combines digital technology, geospatial building intelligence, and enforcement mechanisms to improve compliance and ensure that buildings meet insurance requirements under Nigerian law. Stakeholders believe the initiative will enhance risk management and contribute to safer urban development across Lagos State.
The Nigerian Insurers Association also expressed support for the programme, noting that compulsory building insurance provides financial protection for property owners while promoting resilience in the built environment. The association added that stronger collaboration between regulators, insurers, developers, and government agencies will be essential to the scheme’s success.
Industry experts believe the initiative could serve as a model for other states seeking to strengthen building safety, improve disaster preparedness, and expand insurance penetration in Nigeria. They also noted that effective enforcement and public awareness campaigns will be critical to achieving the programme’s objectives.
