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National Insurance Commission (NAICOM) has thrown its full support behind the Lagos state government’s building insurance scheme.
This is coming on the heels of incessant building collapse across the country with attendant losses. The scheme is designed to ensure that buildings across Lagos are protected against the devastating consequences of fire and flood, among others.
In a keynote address, the Commissioner for Insurance/Chief Executive at NAICOM, Olusegun Omosehin, expressed optimism that the initiative which combines digital innovation, geospatial intelligence, and systematic enforcement represents a major milestone in the evolution of risk management, urban resilience, consumer protection, and insurance growth and development in Nigeria.
The Commissioner noted that the long-existing partnership between Lagos State Government and the Commission is committed to protecting citizens, strengthening economic resilience, deepening insurance penetration, and ensuring that insurance fulfils its proper role as a social and economic stabilizer.
He applauded the state government for embracing insurance not merely as a legal requirement, but as a critical public policy tool for safeguarding lives, properties, investments, livelihoods, businesses, communities, and public assets against the devastating consequences of fire outbreaks, floods, and building collapse.
“As Nigeria’s commercial capital, Lagos carries enormous strategic significance. The concentration of residential, commercial, industrial, and public infrastructure assets within the state makes risk mitigation an imperative rather than an option. The successful implementation of this scheme will not only protect Lagosians but also provide a replicable model for other states across the federation.
“Insurance is often misunderstood as merely a financial product. In reality, insurance is an instrument of social protection and economic recovery. When a building collapses, insurance helps families recover. When fire destroys commercial premises, insurance enables businesses to restart operations. When floods damage homes and public facilities, insurance provides financial support that reduces suffering and accelerates recovery.”
Omosehin reminded Nigerians that without insurance, disasters can push individuals, businesses, and governments into severe financial distress and trigger economic waste. “With insurance, shocks become manageable and recovery becomes possible. This is why compulsory building insurance is not simply a regulatory requirement; it is a public safety intervention.
His words: “The Lagos State Building Insurance Scheme therefore advances a broader national objective of ensuring that no Nigerian is left completely vulnerable when disaster strikes. This scheme does not stand on goodwill alone. It stands on law.
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“Nigeria does not suffer from a shortage of laws. Our challenge has always been enforcement. We have carried compulsory insurance provisions on our books for years while compliance remained weak, awareness remained low, and forged certificates circulated freely.
“If your building is covered and a fire sweeps through it, you will not begin again from nothing. If a structure collapses and an innocent person is injured, there will be a means of compensation rather than a funeral and a fight. If flood damages the premises in which you earn your living, recovery becomes a claim to be paid rather than a ruin to be endured. Insurance, properly enforced, converts catastrophe into something a family and a community can survive. That is the whole of the matter.
“Let this be heard by every underwriter, the confidence we build today will be won or lost at the point of claim. A scheme that collects premiums promptly but pays claims slowly will fail and it will deserve to fail. The Commission will hold operators to the standards the law demands: fair terms, honest pricing, and prompt, full settlement of legitimate claims. Public confidence in insurance is not a slogan, it is earned, one honoured claim at a time.
“At NAICOM, our reform agenda is focused on one central objective, building a stronger, more inclusive, more trusted, and more resilient insurance industry. The scheme presents a valuable opportunity to showcase insurance as a practical solution to real-world challenges.”
He urged property owners to view insurance as an investment in resilience rather than a regulatory obligation. He said that developers and construction professionals must integrate insurance considerations into project planning and risk management frameworks.
Omosehin further said that insurance companies must provide excellent service, fair pricing, and prompt claims settlement, and urged brokers and agents to continue educating the public and facilitating informed decisions.
Similarly, Mrs Ebelechukwu Nwachukwu, Chairman, Nigerian Insurers Association (NIA), who is also the Managing Director/Chief Executive of Rex Insurance Ltd, speaking on behalf of the Association, gave full support to the state government, saying the initiative demonstrates what is possible when the government, regulators and the insurance industry work together with a shared purpose to build a safer, more resilient society.
“This is one of the smartest investments anyone can make in safeguarding lives, assets and the future. We will continue to support our member companies, while also working closely with government agencies and regulators. We will promote public awareness of the value of insurance and continue to champion an insurance industry that is professional, trusted and responsive.”
