By Daniel Tyokua
The Abuja Metropolitan Management Council (AMMC), Federal Capital Territory Administration has announced the enforcement of Mandatory Builders’ Liability Insurance (BLI) for buildings under construction in Abuja.
Speaking at a one-day training on builders’ liability on Thursday, the Deputy Director in the Department of Development Control, Mr.Ajibade Olayinka, said the initiative is a step to protect construction workers, neighbouring property owners and the general public from hazards associated with building projects.
He said the council has developed the AMMC Builders’ Liability Insurance Centralised Digital Platform, designed to manage the submission, verification, assessment, approval and administration of insurance policies.
Olayinka said the platform also links developers, builders, surveyors, insurance brokers and insurers through a single digital system, enabling online application submissions, real-time policy tracking and transparent management of the insurance process.
According to him, the training was organised by AMMC in collaboration with insurance industry partners to sensitise developers, contractors and other stakeholders in the building sector on the provisions of the Nigerian Insurance Industry Reform Act (NIIRA), 2025.
He said the introduction of the insurance scheme would improve compliance with building regulations and strengthen construction protocols aimed at reducing incidents of building collapse.
“The issue of insurance is another layer introduced by the administration to protect workers on construction sites against hazards and building collapse. We are collaborating with the insurance industry to ensure that workers are protected from risks arising from negligence, natural disasters and other unforeseen occurrences on site,” he said.
Olayinka noted that many victims of building collapses are casual workers who are often uninsured and unknown, making compensation difficult.
“In most cases, when a building collapses, the site workers are uninsured and are never compensated. This scheme is intended to ensure that they receive some form of remedy,” he added.
One of the managers of the Builders’ Liability Insurance Project, Dr. Sammy Olaniyi, urged stakeholders to comply with the NIIRA 2025 by obtaining insurance coverage for buildings under construction and renewing the policy annually until projects are completed and certified fit for habitation.
He expressed optimism that the scheme would strengthen monitoring and supervision of construction projects and ensure that each stage of a building project is properly certified by professionals before work proceeds.
Olaniyi explained that it is now compulsory for developers of buildings above one floor in the FCT to obtain Builders’ Liability Insurance.
He warned that failure to comply with the law attracts a fine of ₦5 million, a 12-month prison term, or project shutdown.
According to him, the primary objective of the insurance scheme is not revenue generation but the protection of lives and property through guaranteed compensation for victims of construction-related accidents.
“Section 75 of the NIIRA Act 2025 provides that anybody constructing a building above one floor must obtain insurance.
The essence is to protect third parties, including workers on site, passers-by and neighbouring properties that may be affected by construction activities,” he said.
Olaniyi stressed that the era of construction workers suffering injuries without compensation should come to an end with the implementation of the scheme.
He identified the use of substandard materials, poor supervision and engagement of unqualified personnel as some of the major causes of building collapse in Nigeria and urged developers to engage certified professionals.
He further disclosed that developers currently undertaking construction without insurance coverage would be compelled to comply.
“For those who already have approvals and are on site without insurance, we will visit them to ensure they obtain Builders’ Liability Insurance because it is mandatory for every building under construction. Until the building is completed, insurance coverage must be maintained,” he said.
