The Lagos State Government has launched the Lagos State Building Insurance Scheme (LAGBIS), making insurance compulsory for multi-storey buildings as part of a broader effort to improve construction safety and reduce the financial and human costs of building collapses.
The initiative reinforces existing provisions under Section 48 of the Lagos State Urban and Regional Planning Law, which requires developers of buildings with three floors and above to obtain a Contractors’ All Risks insurance policy before construction begins. Under the new regime, compulsory insurance extends to buildings above bungalow level, including hotels, schools, filling stations, commercial properties and other public-use facilities.
State officials say the scheme is designed not only to provide financial protection against losses arising from structural failures but also to strengthen regulatory oversight and improve compliance with building standards.
Speaking at the launch, Lagos State Governor Babajide Sanwo-Olu, represented by Deputy Chief of Staff Sam Egube, said the initiative underscores the government’s commitment to making Lagos a safer and more resilient city.
“Growth without safety is not progress, and development without accountability is not sustainable,” the governor said, adding that the insurance programme is intended to deepen public confidence in Lagos as a safe and globally competitive destination for investment.
The introduction of LAGBIS comes against the backdrop of persistent building collapses in the state. Between 2011 and 2025, Lagos recorded 171 building collapses—more than half of the incidents reported nationwide during the period. In the first half of 2025 alone, six buildings collapsed, resulting in 14 fatalities.
Authorities, however, note that enforcement efforts have intensified in recent years. The Lagos State Building Control Agency (LASBCA) says it has identified approximately 27,000 distressed buildings across the state and demolished 249 structures considered unsafe before they could collapse.
Insurance industry stakeholders view compulsory building insurance as an important risk management tool that complements regulatory enforcement. By requiring developers to obtain insurance before construction, insurers are expected to carry out rigorous risk assessments, encouraging compliance with engineering and safety standards while discouraging substandard construction practices.
Beyond providing compensation after insured losses, compulsory building insurance is expected to support quicker recovery and reconstruction, reducing the financial burden on affected property owners and businesses.
The new scheme also incorporates technology-driven monitoring through the state’s Electronic Physical Planning Permit System and spatial mapping platforms. Officials say the digital framework will enable regulators to track compliance more effectively, identify uninsured developments and strengthen enforcement across the construction sector.
Industry observers believe the success of LAGBIS will depend largely on consistent enforcement, collaboration between regulators and insurers, and sustained public awareness. If effectively implemented, the initiative could significantly improve risk management in the built environment while restoring confidence in the safety of Lagos’ rapidly expanding property market.
