COMPULSORY BUILDING INSURANCE IN NIGERIA: A MULTI-DISTRICT STUDY OF ENUGU STATE (NSUKKA, AGBANI, AND ENUGU METROPOLIS) AMIDST BUILDING COLLAPSE AND INSTITUTIONAL GAPS

Abstract

Building collapse remains a persistent public safety concern in Nigeria, often resulting in significant casualties, property losses, and socio-economic disruption. Although Sections 64 and 65 of the Insurance Act 2003 mandate compulsory insurance for public buildings and buildings under construction, compliance remains low. This study examines awareness, compliance, and enforcement of compulsory building insurance in Enugu State, focusing on Nsukka, Agbani, and Enugu metropolis. A descriptive survey design was employed, with data collected from 220 respondents comprising developers, building owners, insurance staff, regulatory officials, and community stakeholders. Statistical analysis (Chi-square and regression) revealed that awareness significantly influences compliance (χ² = 15.27, p < 0.001), while institutional enforcement capacity did not significantly predict compliance (β = 0.112, p = 0.081). Conversely, sanctions demonstrated a strong effect on compliance (χ² = 10.84, p = 0.001). Findings also indicate that poor compliance reduces statutory premium remittances to the Federal Fire Service, thereby constraining disaster preparedness. The study concludes that awareness and consistent sanctions are pivotal for improving adherence to compulsory building insurance laws, while institutional capacity must be reinforced with transparency and coordination. Policy recommendations include embedding insurance verification into building approval processes, enhancing public education, digitizing compliance monitoring, and ensuring transparent remittance of premiums to strengthen Nigeria’s disaster response capacity.