The Lagos State Government has formally launched the Lagos State Building Insurance Scheme (LAGBIS), introducing stricter enforcement of compulsory insurance for buildings above one storey in a move aimed at improving public safety, strengthening regulatory compliance and reducing the financial impact of building collapses.
The initiative, unveiled by Governor Babajide Sanwo-Olu through his Deputy Chief of Staff, Sam Egube, is being implemented by the Lagos State Building Control Agency (LASBCA) in partnership with Veda Technology. State officials describe the programme as Nigeria’s first dedicated building insurance scheme designed to integrate insurance compliance into the building approval and monitoring process.
Speaking at the launch in Lagos, Sanwo-Olu said the state’s rapid urban expansion must be accompanied by stronger safety measures to protect lives and investments.
He noted that while Lagos continues to witness significant infrastructure growth, sustainable development requires greater accountability and proactive risk management.
According to the governor, the insurance scheme will provide financial protection for property owners, tenants and construction workers affected by building failures, while reinforcing public confidence in the state’s construction sector.
State authorities also called on residents to report distressed structures and unsafe construction activities, stressing that enforcement of insurance requirements and other building regulations would be intensified.
Under the new enforcement regime, hotels, filling stations, commercial buildings and other qualifying structures operating without the required insurance cover risk regulatory sanctions, including possible closure.
Special Adviser to the Governor on e-GIS and Urban Development, Olajide Babatunde, said compulsory insurance would now be fully enforced for all buildings above one storey, signalling a shift from voluntary compliance to stricter regulatory oversight.
LASBCA General Manager Florence Gbaye said the initiative marks the full implementation of existing statutory requirements that have historically suffered from weak enforcement. She explained that building insurance has long been a prerequisite for obtaining authorisation to commence construction, but compliance levels have remained below expectations.
According to Gbaye, LAGBIS has been designed to simplify compliance through a transparent and technology-enabled framework. The agency will identify buildings that fall within the prescribed categories and notify owners of their obligations under the scheme.
She added that insured buildings would be better positioned to recover from disasters, enabling faster reconstruction and reducing the economic losses associated with structural failures.
Insurance industry stakeholders view compulsory building insurance as a critical component of effective risk management. Beyond providing compensation after insured losses, the requirement encourages better construction standards by subjecting projects to insurer risk assessments and promoting adherence to safety regulations.
The Lagos State Government said it expects the scheme to strengthen the state’s building safety culture while fostering greater collaboration among regulators, developers and insurers. Officials also urged property owners to see insurance not merely as a legal obligation but as an essential safeguard for lives, assets and long-term financial resilience.
With enforcement now taking effect, industry observers will be watching closely to see whether the initiative succeeds in improving compliance and reducing the frequency and consequences of building collapses across Nigeria’s commercial capital.
