By Kehinde Ibrahim, Lagos
THE National Insurance Commission ,NAICOM, has thrown its full weight behind the Lagos State Building Insurance Scheme, describing the initiative as a significant step towards strengthening urban resilience, protecting property owners and occupants, and deepening insurance penetration in Nigeria.
Commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, said the scheme had the potential to transform the way Lagos State manages risks associated with fire outbreaks, flooding and building collapse, while providing a model that could be replicated by other states across the country.
Omosehin spoke at the official launch of the Lagos State Building Insurance Scheme at the Royal Box Event Centre, Victoria Island, Lagos, where he commended the Lagos State Government for demonstrating leadership in the practical enforcement of compulsory building insurance.
He said the initiative represented more than a regulatory requirement, describing it as an important public policy intervention capable of protecting lives, properties, businesses, investments and livelihoods from the financial consequences of disasters.
According to him, the scheme’s integration of digital innovation, geospatial intelligence and systematic enforcement would help ensure that buildings across Lagos are adequately protected against the consequences of fire, flood and structural collapse.
He congratulated Lagos State Governor, Mr. Babajide Sanwo-Olu, the state government and other stakeholders for bringing the initiative to fruition, noting that the scheme reflected what could be achieved when government institutions, regulators, technology providers, professional bodies and the insurance industry work towards a common objective.
“This is not merely a ceremonial occasion. It is the launch of a scheme that has the potential to change the relationship between the people of Lagos and the buildings in which they live, work, trade and worship,” he said.
The NAICOM boss, however, said the launch was taking place against a sobering backdrop, particularly following recent incidents of building collapse in Lagos and other parts of the country that had resulted in loss of lives and property.
He noted that behind every building collapse or fire incident were families that lost homes, businesses that lost their means of livelihood and, in some cases, lives that could never be recovered.
He therefore challenged stakeholders to consider who ultimately bears the financial burden when disasters occur, stressing that the Lagos State Building Insurance Scheme was designed to provide a more sustainable answer to that question.
“For too long in this country, the burden has fallen disproportionately on victims. The Lagos State Building Insurance Scheme is designed to change that. That is why it matters,” he said.
Omosehin noted that Lagos State had consistently demonstrated leadership in the adoption of insurance as a public policy tool, rather than treating it solely as a statutory obligation.
He said the state’s position as Nigeria’s commercial and economic hub, with a high concentration of residential, commercial, industrial and public infrastructure, made systematic risk management particularly important.
According to him, the successful implementation of the scheme would not only benefit residents and businesses in Lagos but could also establish a practical framework for other states to adopt.
He explained that insurance should be understood beyond its traditional perception as a financial product, arguing that it is also an instrument of social protection and economic recovery.
“When a building collapses, insurance helps families recover. When fire destroys commercial premises, insurance enables businesses to restart operations. When floods damage homes and public facilities, insurance provides financial support that reduces suffering and accelerates recovery,” he said.
Without insurance protection, he said, disasters could push individuals, businesses and governments into severe financial distress while increasing economic losses.
He added that insurance could make the consequences of unforeseen events more manageable by providing financial resources for recovery.
This, he said, was why compulsory building insurance should not be regarded merely as a regulatory requirement but as an important public safety and economic resilience measure.
Omosehin said the Lagos initiative was anchored on the provisions of the Nigerian Insurance Industry Reform Act ,NIIRA, 2025, which he described as the most significant overhaul of Nigeria’s insurance legislation in more than two decades.
The Act, signed into law by President Bola Ahmed Tinubu in 2025, repealed and consolidated the country’s fragmented insurance laws into a more comprehensive framework, while strengthening the industry’s capital base, consumer protection provisions and regulatory oversight.
Of particular relevance to the Lagos scheme, he said, was the renewed emphasis on compulsory insurance and the strengthened authority given to NAICOM to ensure compliance.
Under the law, public buildings and buildings under construction above the prescribed height are required to have insurance cover designed to protect owners, occupants, visitors and other members of the public who may be affected by risks associated with such structures.
Omosehin stressed that the objective of the law was not to impose an unnecessary financial burden on citizens but to ensure that victims of fire, flood, structural failure or other insured risks would have access to compensation where losses occurred.
He said Lagos State had taken the national policy framework and translated it into a practical system of implementation at the state level.
“What Lagos State has done is to take this national law and give it practical, enforceable life at the level where buildings actually stand. That is precisely the partnership the Act envisaged between the federal regulator and state governments,” he said.
The Commissioner acknowledged that Nigeria had historically faced challenges in enforcing compulsory insurance requirements despite having relevant provisions in law for several years.
According to him, weak compliance, low public awareness and the proliferation of fraudulent insurance certificates have undermined the effectiveness of compulsory insurance.
He said the Lagos scheme was significant because it sought to address these longstanding weaknesses through technology-driven enforcement.
By combining geospatial building intelligence with a digital platform and systematic enforcement, he said, the state was creating an infrastructure that could make compliance more transparent, measurable and effective.
He added that the approach was consistent with the broader direction of NIIRA 2025, which promotes digital distribution, electronic insurance policies and data-driven regulatory supervision.
“Lagos has read the reform correctly and has moved first,” Omosehin said.
The Commissioner also used the occasion to speak directly to property owners and residents, stressing that the ultimate beneficiary of the scheme should be the citizens.
He said adequate insurance cover could prevent families and businesses from having to rebuild their lives from scratch following major disasters.
If an insured building is destroyed by fire, he explained, the policyholder should have access to financial support for recovery. Similarly, where a structural collapse results in injury or loss, insurance should provide an avenue for compensation to eligible victims.
He also pointed out that where floods damage business premises or homes, insurance could provide a financial cushion that allows affected persons to recover rather than bear the entire cost of the disaster.
“For the citizens, insurance, properly enforced, converts catastrophe into something a family and a community can survive,” he said.
For the insurance industry, Omosehin described the scheme as both a major commercial opportunity and a significant responsibility.
He said bringing a substantial number of buildings in Lagos into the insurance system would expand the pool of insured risks, deepen insurance penetration and provide new opportunities for underwriters, brokers and other market participants.
He noted that the initiative was also consistent with the country’s broader ambition to bring millions of uninsured Nigerians into the formal financial protection system.
According to him, a stronger insurance industry would also contribute to the Federal Government’s ambition of building a $1 trillion economy by mobilising long-term capital and supporting economic stability.
However, he cautioned insurance companies that the success of the scheme would ultimately be determined by the quality of service provided to policyholders, particularly when claims arise.
He warned that insurance operators that collect premiums promptly but delay or frustrate legitimate claims could undermine the credibility of the entire initiative.
“The confidence we build today will be won or lost at the point of claim. A scheme that collects premiums promptly but pays claims slowly will fail, and it will deserve to fail,” he said.
Omosehin assured stakeholders that NAICOM would ensure that insurance operators adhered to applicable standards relating to fair policy terms, appropriate pricing and prompt settlement of legitimate claims.
He said public confidence in insurance could not be achieved through slogans or publicity but through consistent delivery of the protection promised to policyholders.
The Commissioner said the Lagos State Building Insurance Scheme was being launched at a time when the Nigerian insurance industry itself was undergoing significant transformation.
He noted that the Lagos State Government had recognised the role of NIIRA 2025 in creating an enabling environment for initiatives of this nature.
He said NAICOM’s reform agenda remained focused on building an insurance industry that is stronger, more inclusive, trusted and resilient.
He therefore called on all stakeholders to contribute to the success of the scheme.
Omosehin urged property owners to see insurance as an investment in resilience and protection rather than simply a regulatory obligation.
He called on developers and construction professionals to incorporate insurance considerations into project planning, construction and risk management.
He also charged insurance companies to provide competitive pricing, quality customer service and prompt claims settlement, while urging brokers and agents to intensify public education and ensure that consumers make informed insurance decisions.
Government agencies, he said, must also maintain effective collaboration and consistency in enforcement to ensure that the scheme delivers its intended objectives.
He said the ultimate goal should be to establish a culture in which risk protection becomes standard practice rather than something considered only after disaster has occurred.
Omosehin further outlined the commitments of NAICOM to the Lagos State Building Insurance Scheme.
He said the Commission would provide the regulatory backing required to ensure that every insurance policy issued under the scheme was underwritten by insurance companies duly licensed and supervised by NAICOM.
He also pledged the Commission’s support in tackling fraudulent certificates and unlicensed operators, stressing that the effectiveness of compulsory insurance depended heavily on the integrity of the insurance cover issued to the public.
The Commissioner also emphasised the need for openness, transparency and fair competition in the implementation of the scheme.
He said the framework should remain accessible to all insurance operators that are duly licensed and meet the Commission’s requirements on solvency, conduct, underwriting standards and claims payment.
“No compulsory insurance framework of this significance should be structured in a manner that excludes qualified licensed operators, creates undue monopoly, restricts fair market participation, or denies the insuring public the benefit of choice, capacity, innovation and service competition,” he said.
According to him, the responsibility of the regulator is to protect policyholders, preserve market integrity and ensure that all eligible insurance operators have a fair opportunity to participate, provided they meet the required regulatory standards.
He said NAICOM would also regard the Lagos initiative as a national reference point, with the expectation that its successful implementation would provide a template for other states seeking to protect their citizens and assets against similar risks.
“If it succeeds here, and it must, it becomes the template by which other states across the Federation can protect their own citizens. Lagos, as so often, is lighting the path,” he said.
In his concluding remarks, Omosehin returned to the human dimension of the scheme, saying its success should ultimately be measured by the number of people who receive meaningful protection when disaster occurs.
He said the initiative should provide protection to a broad range of residents, from market traders and homeowners to tenants, worshippers, businesses and children living in buildings whose owners may otherwise fail to consider the financial consequences of disaster.
“The measure of this Scheme will not be the size of the ceremony we hold today. It will be the number of Lagosians who, on the worst day of their lives, discover that they are not alone and that there is cover, and there is recovery,” he said.
He commended Governor Sanwo-Olu and the Office of the Special Adviser on e-GIS and Urban Development for their efforts in bringing the initiative to fruition.
Omosehin reaffirmed NAICOM’s commitment to working with the Lagos State Government and other stakeholders to ensure that the scheme achieves its objectives.
He said the Commission would continue to support initiatives capable of strengthening public safety, protecting assets, expanding insurance coverage and improving the resilience of communities and businesses.
The Commissioner ultimately described the Lagos State Building Insurance Scheme as a significant milestone in the development of Nigeria’s insurance industry and reaffirmed NAICOM’s full support for its implementation.
He said the initiative demonstrated that when regulation, technology, government policy and industry capacity are brought together, insurance can move beyond being a statutory requirement to become a practical instrument for protecting lives, sustaining livelihoods and accelerating economic recovery.
