Despite legal mandates under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, victims of fire disasters across Nigeria continue to suffer massive financial losses due to weak enforcement of compulsory insurance for public buildings.
Recent fire incidents at the Great Nigeria Insurance (GNI) building on Lagos Island and the Eleganza Industrial Complex in Orile Coker, Lagos have highlighted a worrying gap between insurance law and actual protection for traders, businesses, and building occupants.
The Legal Framework: NIIRA 2025 and Section 65 of the Insurance Act
Insurance for public buildings is one of 13 compulsory insurance classes outlined in NIIRA 2025, reinforced by Section 65 of the Insurance Act 2003.
The law requires all owners or occupiers of public buildings—including schools, hospitals, offices, shopping malls, warehouses, and tenement houses—to insure against:
- Fire
- Collapse
- Earthquake
- Storm
- Flood
It also mandates coverage for legal liabilities related to property damage, bodily injury, or death of users and third parties.
Non-compliance carries penalties of up to N1 million, 12 months’ imprisonment, or both.
GNI Building Fire: Losses and Lives Affected
On December 24, 2025, a fire broke out at the 25-storey GNI House on Martins Street, Lagos Island, destroying goods worth nearly N1 billion and claiming lives, including a China-based importer, Mr. Obum.
The Lagos State Fire and Rescue Service confirmed firefighters arrived within 12 minutes of the distress call. The fire originated on the fifth floor and spread downward, impacting warehouse storage, textile trading, corporate offices, and retail outlets.
Despite the building’s public and commercial classification, the extent of insurance coverage remains unclear, leaving many occupants to bear the losses personally.
Eleganza Industrial Complex: Devastation Repeated
A similar tragedy occurred at the Eleganza building, Orile Coker, where fire destroyed substantial investments. Eyewitness Okoh Mackson described the incident as devastating, saying:
“Huge investment going down… fire still spreading.”
Without effective insurance, affected occupants face prolonged financial distress and uncertain recovery.
Fire Incidents on the Rise
Fire outbreaks are increasingly frequent in Lagos, Aba, Onitsha, Ibadan, and Kano.
- Lagos recorded 1,685 fire incidents in 2025, with 133 fatalities and N19 billion in property losses.
- Most cases involved residential and commercial buildings, highlighting challenges from dense urbanisation, electrical faults, and overcrowding.
Insurance Industry Capacity
While enforcement remains weak, Nigerian insurers have paid an estimated N303 billion in fire and special perils claims (2015–2024).
Timely claims help businesses resume operations, protect jobs, and reduce dependence on government aid, proving the value of insurance in structured risk recovery.
Persistent Challenges
Despite available insurance mechanisms, issues such as:
- Underinsurance
- Poor documentation
- Non-disclosure
- Weak regulatory enforcement
continue to limit the effectiveness of mandatory insurance coverage.
An insurance executive advised property owners to insure assets at realistic values and fully comply with policy terms to avoid disputes when losses occur.
NAICOM Speaks: NIIRA 2025 Aims for Universal Protection
Mr. Ekerete Gam-Ikon, Deputy Commissioner for Finance and Administration at NAICOM, emphasized that NIIRA 2025 is a landmark reform designed to protect Nigerians in public spaces:
“No Nigerian should leave a public place safe and return home broken and dependent on donations when an active insurance policy could restore dignity and confidence.”
The Road Ahead
While the legislation is strong, the real test lies in consistent enforcement.
Until regulatory measures translate into tangible compliance, mandatory public building insurance risks remaining a theoretical requirement, leaving fire victims exposed to avoidable financial and human losses.
