The Lagos State Government has unveiled the Lagos State Building Insurance Scheme (LAGBIS), making insurance compulsory for buildings above one storey as part of efforts to improve compliance with building safety regulations and minimise the financial consequences of structural failures.
The initiative, introduced on Friday, is a collaboration between the Lagos State Building Control Agency (LASBCA) and Veda Technology. It is designed to provide insurance protection for qualified buildings while safeguarding property owners, tenants, and construction workers against losses resulting from building collapses.
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Speaking at the launch in Lagos, Governor Babajide Sanwo-Olu, represented by his Deputy Chief of Staff, Sam Egube, described the programme as the first of its kind in Nigeria, saying it would reshape the state’s approach to building safety.
According to the governor, Lagos has continued to witness rapid infrastructure development, but such growth must be accompanied by strong safety standards.
“This initiative is the first of its kind in the country and will redefine the building culture in Lagos. While the state is experiencing significant infrastructural growth, development without adequate safety measures cannot be regarded as true progress. We all have a responsibility to improve building safety,” he said.
Sanwo-Olu noted that building collapses often lead to devastating financial losses for businesses, homeowners, and occupants, adding that LAGBIS would establish a framework that protects construction workers, tenants, and property owners from such risks.
He explained that the scheme was introduced to benefit Lagos residents by providing insurance coverage for both building owners and occupants in the event of structural failure.
The governor also urged residents to promptly report distressed buildings and unsafe construction activities within their communities, stressing that the government would intensify the enforcement of the Insurance Act and other relevant building regulations.
“We are building a future where urban development never comes at the expense of human lives. LAGBIS will help strengthen our building safety culture,” he added.
Also addressing the gathering, the Special Adviser to the Governor on e-GIS and Urban Development, Olajide Babatunde, announced that the state would begin strict enforcement of compulsory insurance for all buildings exceeding one floor.
He warned that hotels, filling stations, commercial buildings, and other affected properties operating without the required insurance cover could face penalties, including closure.
The General Manager of LASBCA, Florence Gbaye, said the introduction of the scheme demonstrates the government’s commitment to improving building safety, protecting investments, and ensuring greater compliance with existing regulations.
She explained that although building insurance has always been a requirement before developers receive approval to begin construction, enforcement had been inadequate, resulting in low compliance across the state.
Gbaye said the launch of LAGBIS signals the commencement of full enforcement of the legal requirement.
“Building insurance has long been one of the conditions for obtaining Authorisation to Commence Construction. The Lagos State Building Insurance Scheme has been structured to make compliance easier while promoting transparency, accessibility, and accountability. Buildings that fall within the specified categories will be identified and notified by LASBCA,” she stated.
She added that insured properties would recover more quickly after disasters, reducing the economic burden on businesses, families, and communities.
Gbaye encouraged developers and property owners to embrace the initiative, noting that compliance should not only be viewed as a legal obligation but also as a demonstration of responsible property ownership, sound financial planning, and a commitment to safeguarding lives and investments.
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