The National Insurance Commission (NAICOM) has drawn a line in the sand: no more excuses for unsafe buildings in Nigeria. Armed with the Nigerian Industry Insurance Act (NIIRA) 2025, the Commission is set to clamp down on reckless construction practices that have fueled the country’s tragic history of building collapses.
For decades, collapsed buildings—often in Lagos—have left behind grim scenes of twisted iron, shattered concrete, and frantic rescue efforts. Each disaster has meant lost lives, broken families, and devastated communities. Successive governments promised change, but weak regulation, corruption, and impunity in the construction sector ensured tragedies kept recurring.
Now, with NIIRA 2025, the federal government is taking an uncompromising stance. The law makes insurance a prerequisite for building projects and public properties, tying safety directly to compliance.
Bold Provisions
At the core of the Act is Section 75, which prohibits the construction of any building above one floor without insurance against construction risks. Violators face fines of up to ₦5 million, a 12-month jail term, or both.
Public buildings—including schools, hospitals, hostels, shopping complexes, and tenement houses—must also be insured against hazards such as collapse, fire, flood, storm, and earthquakes, under Section 76.
The law further requires insurers to contribute 0.25% of net premiums into a Fire Services Maintenance Fund, designed to support Nigeria’s underfunded firefighting services. Failure to comply attracts stiff penalties, including fines up to ten times the required amount and possible deregistration.
For the first time, NAICOM has enforcement powers to order building approval authorities to seal off unsafe structures without valid insurance coverage.
Professionals React
Industry experts have welcomed the move. Lagos-based structural engineer Ikechukwu Azomaukwu called the law “a wake-up call that was long overdue.”
“Building collapse has long tarnished the image of real professionals because of quacks cutting corners. Now, with mandatory insurance, malpractice will be harder to hide since insurers will demand proof of compliance with safety standards,” he said.
Azomaukwu urged professional associations to increase monitoring of construction sites to ensure only licensed experts supervise projects. “No building above one floor can go up without insurance. That is not negotiable anymore,” he emphasized.
Spotlight on Lagos
Lagos remains under particular scrutiny, having suffered the highest number of collapses due to rapid urbanisation, lax oversight, and corruption in building approvals. The Lagos State Building Control Agency (LASBCA) has repeatedly defended its monitoring system, but public confidence is thin.
With NIIRA now in force, LASBCA is legally bound to collaborate with NAICOM in verifying insurance compliance before issuing permits or certifying completed structures.
Landlords and Occupiers Under Pressure
Perhaps the most contentious provision is the requirement that landlords and occupiers of public buildings insure their properties. Failure attracts fines of ₦1 million, jail terms of up to 12 months, or both.
The provision has unsettled many residents, particularly in government-built estates where ownership arrangements are unclear. “We don’t even know who to hold responsible if something happens,” said a tenant in a Jakande estate.
Observers argue that public sensitisation campaigns are urgently needed to clarify obligations for both landlords and tenants.
Beyond Legislation
Experts caution that while NIIRA 2025 is a significant step, legislation alone cannot end building collapses. Transparency, accountability, and a cultural shift in how Nigerians view construction safety are critical. Corruption—whether through compromised inspectors or fake insurance documents—remains a threat.
Yet optimists believe the law creates a self-enforcing system: insurers will refuse to underwrite unsafe projects, forcing contractors and landlords to meet standards.
Turning Point or False Dawn?
Nigeria has a long record of strong laws weakened by poor enforcement, raising the question of whether NIIRA 2025 will be different.
But for professionals like Azomaukwu, it represents hope. “The era of excuses is over. We cannot keep losing lives because someone decided to cut corners. This is a wake-up call for all of us,” he said.
The tragedies of the past were preventable. NIIRA 2025 seeks to make safety and accountability inseparable from construction. If implemented faithfully, it could mark the beginning of the end of Nigeria’s building collapse nightmare. If not, it risks becoming yet another law gathering dust.
