The Lagos State Government Enforces Mandatory Building Insurance, Expands Digital Land Reforms

The Lagos State Government has introduced a new policy mandating compulsory insurance for all commercial buildings above two floors, as part of a broader strategy to strengthen safety compliance, enhance investor confidence, and modernize urban governance through technology.

The directive, announced during the 2025 Real Estate Discussions and Awards (REDA) in Lagos, underscores the government’s push to create a more transparent and resilient real estate ecosystem, in line with international best practices.

According to Dr. Olajide Babatunde, Special Adviser to Governor Babajide Sanwo-Olu on Enterprise Geographic Information System (E-GIS) and Urban Development, the insurance policy will safeguard lives and assets, ensuring accountability in the built environment.

He explained that the policy forms part of a wider reform agenda aimed at digitising land administration and physical planning processes. “Lagos has completed a comprehensive digital mapping to support the rollout of the E-GIS platform,” he said. “The system enables instant land searches, online applications, digital certification, and real-time verification of ownership and approvals.”

Dr. Babatunde emphasized that the E-GIS system will close loopholes that have historically encouraged multiple allocations, forged documents, and unapproved constructions.

E-GIS and Land Regularization to Drive Transparency

The state will commence a pilot land and building regularization project in Epe, which will test the integration of digital land records and a new electronic permit system. Under the initiative, compliant developers will be able to obtain approvals within 10 minutes, a significant improvement from the previously lengthy manual process.

Babatunde warned that a physical planning audit will soon be conducted to identify non-compliant developments. “Developers must desist from presenting forged surveys or building on unauthorized plots. Once the audit begins, penalties will apply,” he stated.

Reaffirming Governor Sanwo-Olu’s commitment to urban renewal, Babatunde said the administration is pursuing several regeneration projects, including the Katangua redevelopment, the relocation of Okobaba sawmillers to Agboyi, and multiple site-and-service schemes. These projects, he noted, aim to expand lawful land access, promote sustainable growth, and prevent the proliferation of informal settlements.

He also disclosed plans to harmonize multiple land title systems including Queen’s Titles, Federal Titles, and State Titles into a single transparent framework to improve investor trust and ease of land transactions.

Officials Call for Compliance Amid Rapid Urbanization

Supporting the initiative, Olumide Sotire, Permanent Secretary, Office of Physical and Urban Development, stressed the importance of strict adherence to planning laws as Lagos faces mounting urban pressures.

“Major projects such as the Lekki Deep Sea Port, Lagos-Calabar Coastal Road, and the Lagos Rail System are transforming the city into new economic corridors,” Sotire said. “To sustain this momentum, compliance with urban planning regulations is not negotiable.”

Analytical Insight: Implications for Real Estate and Investment

The enforcement of compulsory building insurance and the digitization of land administration mark a critical shift in Lagos’s property sector governance. Analysts note that the reforms could reduce risks associated with unverified ownership, improve building safety, and attract institutional investors seeking regulatory certainty.

By integrating technology into land management and planning, Lagos is positioning itself as a model for smart urban governance in Africa one that balances safety, innovation, and economic growth.

Conclusion: Lagos Sets a Benchmark for Digital Urban Governance

Lagos’s new policy framework reflects a decisive move towards safer, smarter, and more transparent city management. With the E-GIS rollout and mandatory building insurance in place, the state is taking a strategic step toward aligning with global urban planning standards while reinforcing investor confidence in its fast-growing real estate market.