NAICOM, NIA Push Building Insurance Enforcement, Seek National Adoption Of Lagos Model

By LOVETH-AZODO CHIJIOKE, Lagos

The National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have called for stricter enforcement of compulsory building insurance across the country, describing the newly launched Lagos State Building Insurance Scheme as a model that should be replicated nationwide to protect lives, property and investments.

They made the call at the official launch of the Lagos State Building Insurance Scheme in Lagos, where they said the initiative marks a significant shift from merely having compulsory insurance provisions in law to ensuring their practical implementation through digital technology, geospatial intelligence and systematic enforcement.

Delivering the keynote address, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, described the scheme as a major milestone in strengthening risk management, consumer protection, urban resilience and insurance development in Nigeria.

According to him, the initiative demonstrates what can be achieved through collaboration among government, regulators, technology partners, professional bodies and the insurance industry to safeguard citizens against losses arising from fire, flood and building collapse.

He said while Nigeria has long had laws requiring compulsory insurance for certain categories of buildings, enforcement had remained weak, resulting in low compliance and widespread circulation of fake insurance certificates.

“What distinguishes the Lagos initiative is that it confronts the enforcement gap directly. By marrying geospatial building intelligence to a digital delivery platform and to systematic enforcement at State scale, Lagos is not merely restating an obligation. It is building machinery to make the obligation real,” Omosehin said.

He noted that the initiative aligns with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which strengthened compulsory insurance enforcement, promoted digital insurance distribution and enhanced NAICOM’s regulatory oversight.

The insurance regulator stressed that compulsory building insurance is not intended to burden property owners but to ensure that victims of fire, flood, negligence or building collapse are adequately compensated when disasters occur.

According to him, the successful implementation of the Lagos initiative would serve as a reference point for other states seeking to improve public safety and deepen insurance penetration.

Omosehin also assured that the Commission would provide the regulatory support required for the scheme, intensify efforts against fake insurance certificates and unlicensed operators, while ensuring that all qualified and licensed insurance companies have equal opportunity to participate in the programme.

He emphasised that the long-term success of the initiative would ultimately depend on prompt settlement of genuine claims, warning that public confidence in insurance would be determined by operators’ performance at the point of claims payment.

Also speaking, Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, described the launch as the beginning of a new approach to protecting lives, businesses and public assets through insurance.

She said although compulsory building insurance had existed in Nigerian law for many years, Lagos State had taken a significant step by translating the legal requirement into practical protection through technology-driven enforcement.

“Insurance is not an afterthought following disaster; it is an essential part of building safer communities before disaster occurs,” she said.

Nwachukwu noted that behind every building are families, businesses, livelihoods and years of investment, stressing that while insurance cannot prevent disasters, it can prevent such tragedies from becoming permanent financial hardship.

She urged property owners and developers to view insurance as an investment in resilience rather than a regulatory obligation, adding that the scheme presents both an opportunity and a responsibility for insurance companies to strengthen public confidence through professional service, fair underwriting and prompt claims settlement.

The NIA chairman expressed optimism that the Lagos initiative would encourage other state governments to introduce similar schemes, saying the Association stands ready to collaborate with governments and other stakeholders to expand insurance protection, improve compliance and build more resilient communities across Nigeria.