NAICOM Urges Governments To Prioritize Insurance For Public Buildings, Constructions In Annual Budgets

By LOVETH AZODO, Lagos

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Sunday Thomas, has called on federal and state governments to allocate sufficient funds for insurance coverage of public buildings and constructions in their annual budgets.

Thomas emphasized that insurance for these categories is mandatory under existing insurance laws in Nigeria and must be adhered to by all concerned parties.

Speaking at the 12th meeting of the National Council of Lands, Housing, and Urban Development in Kaduna State, Thomas urged state governments to follow the lead of Lagos State by incorporating insurance laws into their respective states.

Referring to the Insurance Act 2003, Thomas highlighted Section 64, which makes it compulsory for individuals, governments, and corporate organizations undertaking the construction of any building exceeding two floors to procure a builder’s liability insurance policy (building under construction) from one of NAICOM’s licensed insurers. He further explained that Section 65 of the Insurance Act 2003 mandates the insurance of all public buildings in the country.

This requirement aims to protect innocent victims in the event of accidents and other disasters that may occur within such premises.

Outlining the benefits of compliance with these compulsory insurance measures, he said that it can help in the reduction in Government Expenditure “in the event of disasters affecting citizens, insurance companies would bear the financial burden, reducing the reliance on taxpayers’ money for restoration.”

“Compliance offers opportunities for employment in the respective states. Implementation can contribute to boosting the Internally Generated Revenue (IGR) of the respective states,” he said”

The call to prioritize insurance coverage aligns with efforts to ensure financial protection, risk mitigation, and responsible governance in construction and public infrastructure. The appeal underscores the role of insurance in safeguarding against unforeseen circumstances and promoting financial sustainability