The National Insurance Commission (NAICOM) has thrown its full weight behind the Lagos State Building Insurance Scheme, describing it as a landmark initiative that will strengthen risk management, improve urban resilience, deepen insurance penetration, and enhance consumer protection across Nigeria.
Speaking at the official launch of the scheme in Lagos, the Commissioner for Insurance and Chief executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, who was represented by the Deputy Commissioner for Insurance, Finance and Administration, Mr. Ekerete Ola Gam-Ikon, said the initiative marked a significant milestone in the country’s insurance and public safety landscape.
According to him, the scheme, which combines digital innovation, geospatial intelligence, and systematic enforcement, is designed to ensure that buildings across Lagos are adequately insured against fire, flooding, and building collapse.
Omosehin congratulated Governor Babajide Sanwo-Olu, the Lagos State Government, and all stakeholders involved in the initiative, describing the launch as a demonstration of what can be achieved through collaboration among government institutions, regulators, technology partners, professional bodies, and the insurance industry.
“This is not merely a ceremonial event. It is the launch of a scheme that will fundamentally changethe relationship between Lagos residents and the buildings in which they live, work, trade, and worship,” he said.
He noted that the initiative comes at a time when Nigeria continues to witness tragic incidents of building collapse and fire outbreaks, stressing that the financial burden of such disasters has traditionally fallen on victims and their families.
“For too long, those affected by disasters have borne the losses alone.
“The Lagos State Building Insurance Scheme is designed to change that realityby ensuring there is financial protection and compensation when tragedy strikes,” he stated.
The NAICOM boss described insurance as more than a financial product, saying it serves as a critical instrument for social protection and economic recovery.
“When buildings collapse or fires destroy commercial premises, insurance enables families and businesses to recover and rebuild. Without insurance, disasters often push individuals, businesses, and governments into severe financial distress. With insurance, recovery becomes possible,” he said.
Omosehin also linked the initiative to the Nigerian insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Ahmed Tinubu, describing it as the most comprehensive insurance reform legislation in more than two decades.
He explained that the Act consolidated Nigeria’s insurance laws, strengthened consumer protection, reinforced compulsory insurance provisions, and empowered NAICOM to enforce compliance more effectively.
According to him, the legislation requires public buildings and buildings under construction above prescribed heights to carry insurance that protects owners, occupants, visitors, and members of the public against losses arising from fire, flood, negligence, or building collapse.
“Lagos State has taken this national legislation and transformed it into an enforceable framework at the state level. This is exactly the kind of partnership envisaged between the federal regulator and state governments,” he said.
The Commissioner observed that Nigeria’s challenge has never been the absence of insurance laws but weak enforcement, low public awareness, and the proliferation of fake insurance certificates.
He said the Lagos initiative addresses those gaps by integrating geospatial building intelligence with digital platforms and systematic enforcement mechanisms, making compliance more transparent and effective.
Describing the scheme as beneficial to both citizens and the insurance industry, Omosehin said expanding insurance coverage across Lagos would significantly deepen insurance penetration while creating a stronger financial safety net for millions of Nigerians.
However, he warned insurance operators that the success of the initiative would depend largely on prompt claims settlement.
“A scheme that collects premiums efficiently but delays legitimate claims will ultimately fail. Public confidence in insurance is built one honoured claim at a time,” he said.
He called on property owners to see insurance as an investment in resilience rather than merely a legal obligation, while urging developers to integrate insurance into project planning and risk management processes.
He also challenged insurance companies to maintain fair pricing, provide quality service, and ensure prompt settlement of genuine claims, while encouraging brokers and agents to intensify public education on the benefits of insurance.
Reaffirming the Commission’s commitment to the initiative, Omosehin announced that NAICOM would provide the regulatory support required to ensure that every policy issued under the scheme is underwritten only by licensed insurers.
He also pledged the Commission’s support in combating fake insurance certificates and unlicensed operators and reiterated that the implementation framework must remain transparent, competitive, and accessible to all qualified insurance companies licensed by NAICOM.
“No compulsory insurance framework of this significance should exclude qualified licensed operators, create undue monopoly, or deny consumers the benefits of competition, innovation, and choice,” he said.
He added that NAICOM intends to promote the Lagos State Building Insurance Scheme as a national model, expressing confidence that its successful implementation would provide a template for other states seeking to strengthen public safety through compulsory building insurance.
