In a decisive move to bolster safety and regulatory compliance within Nigeria’s built environment, the National Insurance Commission (NAICOM) has reaffirmed its commitment to enforcing mandatory insurance for public buildings and those under construction.
The announcement, made during the 4th meeting of the Joint Committee on Insurance for Public Buildings and Buildings Under Construction on Wednesday in Abuja, underscores NAICOM’s broader strategy to enhance risk management and protect lives, assets, and investments across the country.
The meeting, chaired by Ekerete Gam-Ikon, NAICOM’s Deputy Commissioner for Insurance (Finance and Administration), convened a diverse group of stakeholders, including representatives from the insurance industry, the Federal Fire Service, the quantity surveying profession, and regulatory bodies such as Development Control.
The inclusion of new committee members from the quantity surveying sector signaled NAICOM’s intent to broaden collaboration and leverage specialized expertise in its enforcement efforts.
In his opening remarks, Gam-Ikon outlined NAICOM’s phased approach to enforcement, noting that the commission has already made strides in mandating third-party motor insurance. “We have commenced enforcement with third-party motor insurance, and we are now extending our efforts to public buildings and buildings under construction,” he stated.
This expansion reflects NAICOM’s recognition of the critical role insurance plays in mitigating risks associated with Nigeria’s rapidly growing construction sector and aging public infrastructure.
Gam-Ikon emphasized the importance of inter-agency collaboration, particularly with Development Control, to ensure the initiative’s success. “This work cannot be done in isolation,” he said. “The collaboration with agencies like Development Control is crucial if we want to see real impact.”
He further urged the Development Control Unit to establish a comprehensive database of public buildings and ongoing construction projects, stressing that only structures with approved documentation should be eligible for insurance coverage. “We must avoid a situation where buildings are insured without proper regulatory clearance,” he cautioned, highlighting the risks of non-compliance, such as unsafe constructions and financial losses.
Stakeholders at the meeting echoed Gam-Ikon’s call for rigorous standards. Representatives from the Nigerian Insurers Association and the Federal Fire Service emphasized the need for thorough risk assessments, proper documentation, and adequate insurance coverage as prerequisites for approving building insurance policies.
These measures, they argued, would not only enhance safety but also ensure that insurance payouts are sufficient to cover losses in the event of accidents, fires, or structural failures.
Talmiz Usman, NAICOM’s Director of Legal Enforcement and Market Development, commended the committee’s dedication and underscored the importance of sustained cooperation. “Your continued involvement is key to achieving the commission’s objectives,” he said.
We must work together to strengthen the enforcement of compulsory building insurance to safeguard lives, assets, and investments. Usman’s remarks reflect NAICOM’s broader mission to foster a culture of compliance and accountability within Nigeria’s insurance and construction sectors.
The meeting concluded with a renewed sense of purpose among attendees, who pledged to enhance compliance, improve data sharing, and raise public awareness about the legal requirements for building insurance.
These commitments are particularly timely given Nigeria’s ongoing urbanization and the increasing frequency of building collapses, which have claimed numerous lives and exposed systemic regulatory gaps.
WHAT YOU SHOULD KNOW
With Nigeria facing challenges like building collapses and rapid urbanization, NAICOM’s initiative could be an important measure in ensuring safety and financial security.
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