Lagos Launches Mandatory Building Insurance Scheme

The Lagos State Government has initiated the Lagos State Building Insurance Scheme, marking the first comprehensive implementation of compulsory building insurance under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. This initiative addresses the historical lack of enforcement seen under the repealed Insurance Act 2003, which failed to ensure compliance despite ongoing building collapses in Nigeria.

The scheme aims to cover approximately 500,000 buildings across Lagos's 20 local government areas, focusing initially on public buildings, commercial structures, hotels, schools, and buildings exceeding two floors. Compliance will be overseen by the Lagos State Building Control Agency (LASBCA) through advanced technologies such as satellite mapping and integrated digital permits.

The NIIRA 2025, which replaced the Insurance Act 2003, includes provisions that mandate builders' liability insurance and insurance for public buildings, enhancing consumer protection and empowering the National Insurance Commission (NAICOM) with broader enforcement capabilities. Mr.

Olusegun Ayo Omosehin, Commissioner for Insurance and CEO of NAICOM, emphasized the importance of insurance as a social protection tool.