The Lagos State Government has launched the Lagos State Building Insurance Scheme (LASBIS) to improve compliance with compulsory building insurance, protect property owners and occupants against building-related risks, and strengthen safety in the state’s built environment.

The scheme, unveiled by the Lagos State Building Control Agency (LASBCA) in partnership with Veda Technology in Lagos, is expected to provide insurance cover for eligible buildings against risks such as fire, flood and building collapse while improving enforcement through a technology-driven platform.

Speaking at the launch, Governor Babajide Sanwo-Olu, represented by his Deputy Chief of Staff, Sam Egube, said the initiative would strengthen confidence in Lagos as a safe and globally competitive city.

He said the scheme was not only about paying claims after disasters but also about ensuring compliance with building standards to prevent avoidable incidents.

According to him, insurance companies participating in the scheme must work with regulators to ensure that buildings meet approved standards, while legitimate claims are settled promptly whenever disasters occur.

Sanwo-Olu also advocated professional indemnity insurance for engineers, supervisors and other professionals in the construction sector to promote accountability and improve standards in the built environment.

The governor noted that Lagos recorded 171 building collapses between 2011 and 2025, accounting for more than half of such incidents reported nationwide, adding that recent reforms had helped reduce the number of collapses through improved inspections and enforcement.

He disclosed that LASBCA had identified over 27,000 distressed buildings and removed 349 unsafe structures, stressing that the government’s focus was shifting from identifying distressed buildings to preventing them from emerging.

Deputy Commissioner for Insurance (Finance and Administration), National Insurance Commission (NAICOM), Ekerete Ola, described the initiative as a major step towards strengthening compulsory building insurance and protecting Nigerians from the financial consequences of disasters.

He said the scheme aligns with the Nigerian Insurance Industry Reform Act (NIRA) 2025 and would ensure that licensed insurance companies honour legitimate claims.

Ola added that the initiative would serve as a model for other states by combining technology, regulatory oversight and enforcement to improve insurance compliance and protect lives, investments and public assets.

Special Adviser to the Governor on e-GIS and Urban Development, Olajide Babatunde, said the insurance scheme completes Lagos’ urban development framework by complementing physical planning and building control with financial protection for building owners and occupants.

He explained that the platform integrates the state’s digital property database, electronic planning permit system, satellite imagery and address numbering programme to improve monitoring and compliance.

According to him, compulsory building insurance would be linked to the issuance of certificates of fitness for buildings and implemented in phases, beginning with petrol stations, hotels, construction sites, banks, schools and other commercial buildings.

Attorney-General and Commissioner for Justice, Lagos State, Lawal Pedro, said compulsory insurance provisions had existed in Nigerian law for decades but had suffered from poor enforcement.

He urged insurance companies to prioritise prompt payment of claims to build public confidence and encourage more property owners to embrace insurance beyond mere regulatory compliance.

Chief Executive Officer of Veda Technology, Wole Pedro, said the focus would now shift from launching the scheme to ensuring its effective implementation.

Pedro said the platform was being piloted with a few insurance companies, adding that all licensed and capitalised insurers are expected to come on board before the end of the year.

He clarified that the platform would not be the exclusive channel for building insurance, noting that property owners could still purchase insurance from any licensed insurance company and upload evidence of their policy documents to the system for compliance and certification.