Lagos State has launched the Lagos State Building Insurance Scheme (LAGBIS), making building insurance compulsory for structures above one storey, commercial facilities, and public buildings.
Governor Babajide Sanwo-Olu, represented by Deputy Chief of Staff Sam Egube, unveiled the scheme in Lagos on July 24, 2026.
The initiative was introduced through the Lagos State Building Control Agency (LASBCA) in partnership with Veda Technology.
The governor emphasized: “Growth without safety is not progress, and development without accountability is not sustainable.”
Key Features of LAGBIS
The key features of Lagos Business Insurance are tagged as Compulsory Coverage.
The Compulsory Coverage areas are:
All buildings above one storey, hotels, filling stations, and commercial facilities must obtain insurance.On the other hand, Non-compliant structures risk sanctions, including closure.
Technology-Driven Enforcement:
Digital platforms and geospatial intelligence will monitor compliance.
In addition, it will simplified access to insurance policies for property owners.
Risk Protection:
The compulsory coverage will cover against fire, flood, and structural collapse.It will also covers financial protection for property owners, tenants, and construction workers.
Regulatory Oversight:
LASBCA identified 27,000 distressed buildings and removed 349 unsafe structures between 2011 and 2025.
Lagos recorded 171 building collapses in that period, accounting for more than half nationwide.
⚪ Stakeholder Support
The National Insurance Commission (NAICOM) pledged regulatory backing, insisting that only licensed insurers underwrite policies.
NAICOM also committed to fighting fake certificates and ensuring transparency and competitiveness in the scheme.
The implications are broken down further:
- For Property Owners:
Mandatory compliance ensures financial protection and reduces liability.
- For Tenants & Workers:
Insurance provides compensation in case of disasters.
- For Lagos State:
Reinforces its image as a safe, globally competitive city, while addressing the chronic issue of building collapses.
The initiative aims to tackle recurring building collapses, protect lives and property, and enforce accountability in the construction sector.
Editorial Angle
LAGBIS is more than an insurance scheme. It’s a cultural shift in Lagos’ building practices.
By enforcing compulsory coverage, the government is signaling that development must prioritize safety.
Yet, the real challenge lies in consistent enforcement and ensuring that premiums remain affordable.
If successful, Lagos could set a national precedent, proving that urban growth and safety can coexist.
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