NAICOM Mandates Compulsory Insurance for All Public Buildings in Nigeria

The National Insurance Commission (NAICOM) has announced strict enforcement of the compulsory insurance policy for all public buildings across Nigeria, as stipulated in Section 65 of the Insurance Act 2003. This move aims to enhance public safety and boost insurance penetration in the country.

Key Details of the Directive:
– Applies to all buildings accessible to the public (schools, hospitals, hotels, offices, etc.)
– Requires minimum third-party liability coverage
– Building owners must display valid insurance certificates visibly
– Compliance verification to begin October 2024

Penalties for Non-Compliance:
– ₦500,000 fine for individual building owners
– ₦1 million fine for corporate entities
– Possible closure of uninsured premises

NAICOM Commissioner Sunday Thomas stated: “This enforcement drive will protect Nigerians from building-related accidents while growing the insurance sector. We’re working with state governments and fire services to ensure nationwide compliance.”

**Implementation Strategy:**
1. Public awareness campaigns starting August
2. Digital verification platform for certificates
3. Collaboration with local government authorities
4. Special task force for enforcement

The policy comes after several tragic building collapses exposed low insurance coverage, leaving victims without compensation. Industry data shows less than 5% of public buildings currently carry required insurance.

**Expected Impacts:**
– Potential 3 million new insurance policies
– ₦50 billion premium income expansion
– Improved safety standards nationwide
– Job creation in insurance sector

State governments have welcomed the initiative, with Lagos already aligning its building control regulations to support the enforcement. NAICOM will conduct quarterly compliance reviews and publish performance rankings by state.

This enforcement forms part of broader reforms to achieve Nigeria’s 40% insurance penetration target by 2030. Building owners are advised to procure coverage from NAICOM-licensed insurers to avoid sanctions.