Lagos Moves to Enforce Compulsory Insurance for ALL Commercial Buildings Above Two Floors

The Lagos State Government has formally announced its decision to enforce compulsory insurance for all commercial structures exceeding two floors, marking a major regulatory step aimed at improving safety standards and protecting public interest in Nigeria’s bustling commercial hub.

The plan was disclosed at the recently concluded 2025 Real Estate Discussions and Awards by Dr. Olajide Babatunde, the Special Adviser to the Governor on Enterprise Geographic Information System (E-GIS) and Urban Development. The announcement, made public today, Sunday, November 2, 2025, signals the state’s readiness to implement existing national law regarding public building insurance, which has often been overlooked.

Dr. Babatunde emphasized that the mandate is part of a series of reforms designed to restore order, transparency, and safety to the rapidly expanding urban landscape. The requirement to insure buildings above two floors aligns directly with the relevant sections of the Insurance Act, 2003, which stipulate that public buildings must be insured against hazards such as collapse, fire, earthquake, storm, and flood.

Technology and Penalties to Drive Compliance

The compulsory insurance initiative is being introduced alongside significant technological and administrative upgrades. The Governor’s Special Adviser confirmed the imminent rollout of the Enterprise Geographic Information System (E-GIS), a digital platform that will facilitate instant land searches and real-time verification of ownership.

Furthermore, a new electronic planning permit system will allow compliant applicants to secure building approvals in minutes, drastically cutting bureaucratic delays. These technological tools are intended to ensure developers and property owners have no excuse for non-compliance.

The government issued a stern warning to developers engaging in unapproved construction, double allocations, or forged surveys, stating that a comprehensive physical planning audit is underway. Developers who fail to comply with the new compulsory insurance mandate, or who violate building codes, will face severe penalties as the government seeks to eradicate the menace of building collapses in the state.

The move is expected to be widely supported by insurance professionals who have long advocated for the enforcement of compulsory policies as a means to provide financial protection to victims and discourage substandard construction practices.