3 Years On: NAICOM Abuja Insurance Conference Under Scrutiny as Building Insurance Enforcement Lags

…..a pivotal National Insurance Conference in Abuja and compulsory building insurance compliance and public awareness reforms

As Nigeria edges toward the three-year mark since a pivotal National Insurance Conference in Abuja, a pivotal National Insurance Conference in Abuja,convened under the leadership of then Commissioner for Insurance, Sunday Olorundare Thomas, stakeholders in the financial and real estate sectors are now intensifying scrutiny over the pace of implementation—particularly on compulsory building insurance compliance and public awareness reforms.

The conference, widely regarded as a defining moment in Nigeria’s insurance reform journey, placed strong emphasis on addressing recurring urban disasters, strengthening risk coverage frameworks, and improving enforcement of existing insurance obligations tied to buildings and public infrastructure.

Today, however, industry observers say the key question is no longer about policy articulation—but execution, enforcement, and measurable impact.

From Policy Momentum to Implementation Gap

At the time of the Abuja conference, NAICOM’s agenda centered on:

Expanding compulsory insurance compliance for buildings

Strengthening public awareness on property risk protection

Reducing Nigeria’s exposure to fire, collapse, and flood-related losses

Integrating insurance into urban planning and building approval systems

Despite these commitments, stakeholders now argue that implementation has been uneven across states and local authorities.

A recurring concern is that while regulatory frameworks exist, compliance levels among property owners remain low, especially in residential and informal housing segments where awareness is weakest.

The NIIRA 2025 Effect: A New Compliance Pressure Point

The emergence of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 Under the new leadership of Olusegun Ayo Omosehin Commissioner For Insurance and NAICOM CEO, has significantly reshaped the policy conversation.

The reform framework is expected to:

Strengthen enforcement mechanisms for compulsory insurance policies

Digitise insurance verification and regulatory oversight

Link building approvals and occupancy certificates to insurance compliance

Improve penalties for non-compliance

Expand insurance penetration through structured enforcement channels

Analysts say NIIRA 2025 effectively transforms earlier conference resolutions into legally enforceable obligations, shifting the system from persuasion to compulsion.

Performance Review: What Has Changed Since the Conference?

While NAICOM has made incremental progress in public sensitisation and regulatory coordination, stakeholders highlight several implementation realities:

1. Limited Enforcement at Subnational Level

Insurance enforcement remains inconsistent across states, particularly in building approval processes.

2. Low Insurance Penetration

Nigeria’s insurance penetration is still estimated at below 1% of GDP, reflecting slow adoption of compulsory policies.

3. Awareness Deficit

Many property owners remain unaware of compulsory building insurance requirements or do not perceive immediate benefits.

4. Claims Trust Gap

Public scepticism around claims settlement continues to affect voluntary compliance levels.

Economic and Risk Implications

Experts argue that weak enforcement of building insurance has broader macroeconomic consequences:

Rising fiscal exposure for government disaster response

Continued household wealth destruction after urban disasters

Increased vulnerability in high-density urban settlements

Weak capital recovery cycles in real estate markets

Economist Celestine Ukpong notes that the issue goes beyond insurance policy:

“Without enforcement, insurance remains symbolic. The real economic cost is carried by households and government after every disaster.”

Dr. Akin Olaniyan, a veteran journalist adds that regulatory communication must evolve into accountability:

“The challenge is not what was said at the conference—it is what was done afterward. Policy memory without enforcement is ineffective governance.”

Stakeholder Position: Growing Demand for Accountability

As the anniversary of the Abuja conference approaches, stakeholders across the insurance, construction, and financial sectors are calling for:

A public implementation scorecard from NAICOM

Clear data on insured building coverage growth

Stronger collaboration with state governments

Transparent reporting on enforcement actions

Faster integration of NIIRA 2025 compliance systems

Industry players argue that Nigeria is now at a critical transition point between regulatory intent and institutional delivery.

Outlook: A Reform at a Defining Crossroads

The legacy of the Abuja National Insurance Conference under Sunday Olorundare Thomas is increasingly being judged not by its policy declarations, but by its measurable outcomes.

With NIIRA 2025 introducing stronger legal backing for compulsory insurance, stakeholders believe the next phase will determine whether Nigeria finally achieves:

A functional compulsory building insurance system

Improved urban risk resilience

Higher insurance penetration rates

Reduced post-disaster fiscal strain

For now, the conversation has shifted from conference resolutions to a more pressing question: has Nigeria’s building insurance system truly moved from policy to practice?

Three years after NAICOM’s Abuja Insurance Conference led by Sunday Olorundare Thomas, stakeholders question progress on compulsory building insurance as NIIRA 2025 raises enforcement expectations in Nigeria’s insurance sector.