Lagos Introduces Compulsory Building Insurance to Landlords

• The Lagos State Government has launched the Lagos State Building Insurance Scheme (LAGBIS) to enforce compulsory building insurance, improve safety standards, and protect lives and property.

The Lagos State Government has unveiled the Lagos State Building Insurance Scheme (LAGBIS) as part of efforts to enforce compulsory building insurance, improve building safety, and protect lives and property across the state.

The government said the initiative was introduced because “growth without safety is not progress,” stressing that rapid development must be accompanied by stronger safety measures and accountability.

Governor Babajide Sanwo-Olu, represented by the Deputy Chief of Staff, Sam Egube, made the announcement during the official unveiling of the scheme on Friday in Lagos.

According to the governor, the initiative is designed to strengthen building safety, promote accountability in the construction sector, and reinforce Lagos’ position as a safe, responsible, and globally competitive city.

“What we are launching today is not just a scheme; we are strengthening another institution that will deepen confidence in Lagos as a safe, responsible and globally competitive city.

“Growth without safety is not progress, and development without accountability is not sustainable.

“The true measure of development is not how much we build, but how well we protect the lives that those structures are meant to serve,” he said.

Sanwo-Olu noted that Lagos has continued to witness rapid physical development driven by increased investments in residential, commercial, and infrastructure projects.

However, he stressed that every new building comes with the responsibility of ensuring the safety of occupants and surrounding communities.

171 Building Collapses Recorded

The governor disclosed that Lagos recorded 171 building collapses between 2011 and 2025, accounting for more than half of the building collapse incidents reported nationwide during the period.

He further revealed that six buildings collapsed in the first half of 2025, resulting in the deaths of 14 people.

According to him, these incidents have led to loss of lives, financial hardship for businesses, emotional trauma for affected families, and reduced public confidence.

“Preventing disasters will always cost less than recovering from them,” he said.

LASBCA Identified Over 27,000 Distressed Buildings

Sanwo-Olu stated that the Lagos State Government has continued to strengthen regulatory oversight through the Lagos State Building Control Agency (LASBCA) by expanding inspections, improving enforcement, and ensuring greater compliance with building regulations.

He disclosed that LASBCA has identified more than 27,000 distressed buildings across the state and has successfully removed 349 dangerous structures before they could collapse and cause loss of lives.

How the New Scheme Will Work

According to the governor, the newly launched LAGBIS will provide a technology-driven framework to ensure that eligible buildings are adequately insured against insurable risks.

The scheme is expected to protect:

• Property owners.
• Building occupants.
• Construction workers.

Sanwo-Olu explained that although compulsory building insurance is already provided for under the Insurance Act and reinforced by Lagos State building regulations, compliance has remained inconsistent over the years.

He assured residents that the state government would intensify enforcement to ensure wider compliance with the law.

The governor also called on licensed insurance companies to partner with the government to ensure the successful implementation of the initiative.

According to him, such collaboration will strengthen institutional confidence and promote responsible development across the state.

“As we officially launch LAGBIS today, we are doing more than introducing another public policy.

“We are laying an institutional foundation for the future Lagos we all desire, where ambition is matched by responsibility,” he added.

LASBCA Explains Benefits of the Scheme

Earlier, the General Manager of LASBCA, Mrs. Florence Gbaye, described LAGBIS as a landmark initiative that reflects the Lagos State Government’s commitment to safer buildings, stronger regulatory compliance, and a more resilient built environment.

She said the scheme represents a deliberate shift towards a sustainable and globally aligned approach to building management and risk mitigation.

According to her, the initiative demonstrates the government’s commitment to ensuring that every building in Lagos is properly designed, constructed, maintained, and adequately protected against uncertainties and insurable risks.

Gbaye explained that LASBCA’s responsibilities go beyond enforcing building regulations, adding that the agency is also committed to safeguarding lives, preserving investments, and promoting public confidence in the built environment.

She disclosed that all buildings falling within the prescribed categories would be identified and notified by LASBCA for compliance.

She also announced that LAGBIS would be integrated into the state’s Electronic Physical Planning Permit Processing System to simplify compliance while promoting transparency, accessibility, and accountability.

According to her, the insurance framework will also strengthen economic resilience by reducing the financial burden on the government during emergencies and enabling faster recovery and reconstruction for affected businesses, families, and communities.

Gbaye urged property owners and developers to embrace the initiative, describing it not only as a legal requirement but also as a demonstration of responsible property ownership and sound financial planning.

The unveiling ceremony was attended by developers, engineers, stakeholders in the construction and built environment sectors, as well as government officials.