Lagos Launches Pioneering Digital Building Insurance Scheme to Protect Property Owners and Occupants

The LAGOS State government, in a bid to curb the devastating loss of lives, Finances and properties at the time of disaster on Friday, July 24, 2026 through the Lagos State Building Control Agency (LASBCA) in partnership with VEDA Technology officially launched the Lagos State Building Insurance Scheme (LAGBIS). 

The Groundbreaking program was aimed at enforcing compulsory building insurance, providing robust financial protection for property owners, tenants, and construction workers across the State.

‎Unveiled over the weekend by the Lagos State Building Control Agency (LASBCA) in partnership with VEDA Technology, the scheme marks a significant shift from Instead of just playing damage control after an emergency, the state is finally stepping in early to prevent disasters before they happen and curb the constant string of building collapses." Stemming the Tide of Disasters

‎

‎The introduction of Lagos State Building Insurance Scheme (LAGBIS), this move comes as a direct result of the troubling rise in fire outbreak, and building hazards/collapse across Lagos. Recent government records show that Lagos had 171 building collapses between 2011 and 2025. That accounts for more than half of all the collapses in the entire country. The state documented over 1,685 fires in the past year alone, resulting in estimated property losses of ₦19.7 billion. One of the heartbreaking fire outbreak incidents which took place at The Great Nigerian Insurance Building on Lagos Island Lagos on the Christmas eve of 2024 which claimed lives, destroyed hundreds of shops, and billions of naira worth of goods.

‎

‎Governor Babajide Sanwo-Olu ably represented by Deputy Chief of Staff Sam Egube, at the launch described the initiative as an acceptable approach and the first of its kind in Nigeria, aimed at transforming the state’s safety culture.

‎

‎Egube stated "This is a scheme that will change the building culture of our people, he further stated that infrastructural transformation in the state has been remarkable, but growth without safety is not progress. When a building collapses, businesses suffer, individuals are severely affected, and there are financial losses  meted to the Government and the masses. He stated that Lagos State Building Insurance Scheme (LAGBIS) is instituted to establish a framework that protects construction workers, tenants, and property owners."

‎

‎The governor emphasized that the government’s focus is actively shifting from merely identifying distressed buildings, of which over 27,000 have been documented and 349 unsafe structures removed, to preventing them from emerging in the first place.

‎

‎A Tech-Driven Approach to Compliance

‎At the core of LAGBIS is Africa’s first fully digitized building insurance and compliance platform, developed by VEDA Technology. Designed to simplify the fragmented process, the system integrates the Nigerian Insurance Industry Database (NIID), the Lagos State Building Control Agency (LASBCA) compliance framework, and the Electronic Physical Planning Permit System (EPPPS).

‎Dring the event, Bode Pedro, the CEO of VEDA Technology, emphasized the platform's efficiency, stating that it leverages address intelligence, satellite imagery, and digital building records across the state's 20 local government areas.

‎

‎"What we have built is a digital ecosystem designed to make building insurance simpler, more transparent, and accessible for every eligible building owner," Pedro explained.

‎

‎Under the scheme, every valid policy issued automatically generates a digital compliance certificate. During routine inspections, LASBCA officials can instantly verify a building's insurance status. Furthermore, tenants and prospective buyers can check if a building is safely insured before committing to a lease or purchase by querying the digital database. For the first round, they're targeting 500,000 structures out of the roughly three million properties already registered in the system.

‎Enforcement and Regulatory Support

‎The scheme has garnered strong backing from federal regulators. Head of the National Insurance Commission, Olusegun Omosehin, gave the main speech and described LAGBIS as a major step forward for Nigerian insurance

‎"Behind every collapse and every fire is a household that loses a home, a trader who loses a livelihood, and too often, a life that cannot be recovered," Omosehin remarked, stressing that the launch marks the beginning of a new era for urban resilience in Lagos.

‎To ensure the policy is not ignored, the Lagos State Government has rolled out stringent enforcement measures. Dr. Olajide Babatunde, Special Adviser to the Governor on e-GIS and Urban Development, noted that compulsory building insurance will now be tied to the issuance of certificates of fitness for buildings.

‎Implementation will occur in phases, prioritizing high-risk and commercial structures such as petrol stations, hotels, construction sites, banks, and schools. Property owners who fail to comply face severe penalties, including fines of up to ₦5 million, and risk having their buildings completely sealed off by authorities until valid coverage is secured.

‎A Blueprint for the Future

‎General Manager of LASBCA, Builder Florence Gbaye, noted that the state's rapid development must be anchored by rigorous regulatory compliance to protect ongoing investments. To facilitate the rollout, nine NAICOM-licensed insurance companies have already been onboarded to underwrite policies during the pilot phase, with all licensed and capitalized insurers expected to join the platform by the end of 2026.

‎With its integration of digital technology, regulatory oversight, and strict enforcement, LAGBIS is not merely about post-disaster claims; it forces a standard of building quality. By holding both property owners and the construction sector accountable, Lagos aims to set a definitive model for urban safety that other states across Nigeria can replicate

 

‎