By David Akinmola
Nigeria’s drive to close its housing deficit and unlock investments in the real estate sector will remain exposed to recurring losses unless insurance becomes a central pillar of housing policy, insurance experts have warned.
Speaking at the 20th Africa International Housing Show (AIHS) 2026, Managing Director and Chief Executive Officer, Heirs General Insurance, Wole Fayemi, noted the country’s housing strategy must evolve beyond increasing the supply of homes to protecting the lives, investments and communities those assets represent, that repeated building callapses and other disasters have exposed significant gaps in Nigeria’s housing development framework.
His intervention comes as governments at all levels intensify efforts to bridge Nigeria’s estimated housing deficit, while the insurance industry seeks to leverage the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to deepen compulsory insurance compliance and improve risk management across the built environment.
According to Fayemi, a housing policy driven solely by construction targets is inadequate if completed buildings remain vulnerable to avoidable risks capable of eroding years of investment.
“A housing policy that focuses solely on construction is incomplete. The true measure of success is not only the number of homes we build, but how effectively we protect the people, investments and communities those homes represents,”he said.
Fayemi noted that recurring building collapses have resulted in avoidable death, destruction of property worth billions of naira and declining public confidence in the built environment.
He argued that insurance should no longer be viewed merely as a statutory obligation but as a strategic tool for protecting national assets and strengthening economic resilience.
Referring to the provisions of the NIIRA 2025, he said developers and occupiers have a responsibility to insure buildings, stressing that compliance would safeguard investments, reduce systemic risks and protect families and businesses from catastrophic losses.
He also advocated stronger collaboration among government, developers, mortgage institutions, insurers and regulators to ensure insurance is integrated into housing finance and project development from inception.
According to him, embedding insurance into the housing value chain would improve investors’ confidence, enhance access to finance and promote more resilient communities.
Insurance professionals who spoke with The Guardian at the weekend, said Fayemi position reflects the industry’s long-standing campaign for stronger enforcement of compulsory insurance laws, particularly those relating to buildings.
The former Managing Director of FSL Insurance Broker Limited, Alfred Daudu, said Nigeria already has adequate legal provisions on compulsory building insurance, but enforcement has remained weak, leaving property owners and investors exposed to avoidable losses.
According to him, every building under construction above two floors and every public building is expected to carry insurance under existing laws, yet compliance remains significantly low.
“The issue is no-longer the absence of legislation but effective enforcement. If compulsory insurance is properly implemented, many victims of building collapse and other disasters would receive compensation, while governments would not bear the entire burden of relief and reconstruction, “he said.
Also speaking on the development insurance week, former President/Chairman of Council, Chartered Insurance Institute of Nigeria (CIIN) Yetunde Ilori, described insurance as an indispensable component of sustainable housing development, arguing that mortgage lenders, developers and homebuyers all stand to benefit when projects are adequately protected.
She noted that integrating insurance into housing finance would strengthen lenders confidence, reduce credit risks and encourage greater private sector participation in affordable housing delivery.
