How Regulatory Gaps Fuel Nigeria’s Building Collapse Crisis and Its Economic Fallout

Building collapses in Nigeria are not just safety failures, they are economic disasters. From 2022 to 2024, over 135 collapses caused billions in property losses, business disruptions, and investor withdrawals. In Lagos alone, rising insurance costs and weakened real estate confidence are stalling development. Beyond property damage, each collapse forces businesses to shut down, displaces families, and strains government resources. Investors hesitate to fund new projects, while developers struggle with higher costs. The real issue isn’t just poor materials—it’s regulatory failure. Weak enforcement and corruption allow unsafe buildings to be constructed, increasing economic risks. If Nigeria fails to strengthen regulations, it risks losing billions in infrastructure value and foreign investment. Closing these gaps is not just about safety, it’s about protecting the economy from further instability.

Why Buildings Collapse: The Underlying Causes

Building collapses in Nigeria aren’t random accidents, they stem from deep-rooted issues in construction practices, weak regulations, and cost-cutting decisions. A major cause is the use of substandard materials and rushed workmanship. Nearly 60% of collapses in Lagos have been linked to poor-quality cement, defective steel rods, and improper concrete mixing. The 2021 Ikoyi collapse was tied to weak concrete reinforcement, while a 2024 disaster resulted from faulty steel. Weak foundations further increase the risk. Many buildings are constructed on unstable ground due to inadequate soil testing. Without proper assessments, structures inevitably fail. Regulatory failures make the problem worse. Over 40% of collapsed buildings had unauthorized modifications, often exceeding approved height limits or incorporating unsafe expansions. Corruption fuels these failures. Developers frequently bypass safety regulations through bribes, leading to unapproved projects proceeding unchecked. Additionally, unqualified builders, known as "quacks," take on projects without the necessary expertise, increasing the likelihood of structural failures. Environmental factors like heavy rainfall and erosion can accelerate collapses, but they usually expose pre-existing weaknesses. The 2023 Kano collapse, triggered by torrential rain, ultimately failed due to poor construction practices. Economic pressures worsen the situation. Over half of developers admit to using cheaper materials to maximize profits, prioritizing cost savings over safety. The solution lies in stricter enforcement of building codes, severe penalties for violations, and ensuring only certified professionals handle construction. Without urgent reforms, preventable tragedies will continue, costing lives and eroding public confidence in urban development.

The Weak Links in Nigeria’s Construction Regulations

Nigeria's construction regulatory framework is designed to ensure safety but enforcement challenges, resource limitations, and poor coordination among oversight agencies consistently undermine its effectiveness. Several regulatory bodies oversee Nigeria’s building sector:

• The Nigerian Building Code (NIS 89: Part 5: 1991) sets minimum standards for structural integrity, fire safety, and accessibility.

• The Nigerian Urban and Regional Planning Act regulates land use and zoning.

• The Standards Organization of Nigeria (SON) ensures that construction materials meet national and international quality benchmarks.

• The Council of Registered Builders of Nigeria (CORBON) accredits builders and standardizes construction practices.

• The National Environmental Standards and Regulations Enforcement Agency (NESREA) monitors pollution from construction activities.

Despite these frameworks, enforcement is weak, coordination is poor, and corruption is rampant. One of the most visible failures is the widespread use of substandard materials. With minimal oversight, developers frequently opt for cheaper alternatives that compromise safety. Additionally, the lack of strict enforcement allows builders to make unauthorized modifications that weaken structural integrity. A major gap is the lack of local government empowerment. While municipalities are responsible for issuing permits and conducting inspections, many lack the resources and autonomy to enforce regulations effectively. Granting them more authority and equipping them with digital tracking systems would help reduce non-compliant projects. Public trust has also been eroded. Informal settlements see unchecked construction, leaving residents highly vulnerable to structural failures. Meanwhile, bribery prevents accountability, allowing developers to sidestep building standards. To address these systemic failures, Nigeria must invest in stronger regulatory enforcement, improve coordination between agencies, and provide training and resources for building inspectors. Community involvement in monitoring construction activities and enforcing stricter penalties could also help close these gaps.

The Economic Consequences of Nigeria’s Building Collapse Crisis

The financial toll of Nigeria’s recurring building collapses extends far beyond the immediate destruction. From investor withdrawals to rising insurance costs, the economic impact is a chain reaction that weakens entire sectors.  Between 2000 and 2021, Nigeria lost an estimated $3.2 trillion in property damage, with Lagos alone witnessing the displacement of over 6,000 households. The 2021 Ikoyi high-rise collapse, for instance, wiped out billions in real estate value, including foreign-backed luxury developments. The persistent failures have severely dented investor confidence, shrinking the real estate sector’s GDP contribution by 15%. Developers struggle to secure funding as insurance companies, burdened with millions of dollars in claims annually, raise premiums or refuse coverage altogether. With substandard materials accounting for nearly 59% of collapses, the industry loses billions each year in wasted resources. Beyond financial losses, the human cost is staggering. Thousands of families are uprooted, small businesses caught in collapsed structures rarely recover 45% never reopen, costing the economy $300 million annually in lost income. Nigeria’s construction sector is fast losing its appeal to international investors. The crisis also deters international investment. The 2021 Ikoyi disaster prompted Dubai-based firms to withdraw $200 million from planned developments, while broader systemic failures could lead to a projected $15 billion annual loss in FDI by 2030. The perception of weak regulatory oversight and corruption only deepens the hesitancy of foreign investors. Without urgent reforms, Nigeria’s building collapse crisis will continue to drain billions from its economy. Strengthening regulatory enforcement, combating permit corruption, and enforcing stricter building standards are essential to reversing this downward spiral. Source (Brookings)

How to Strengthen Nigeria’s Building Regulations

To curb the persistent issue of building collapses, Nigeria must adopt a stricter approach to enforcement. Regulatory agencies need to take a zero-tolerance stance against unapproved construction, ensuring compliance with the National Building Code. Mandatory inspections at key construction stages, foundation, structural framework, and finishing should be enforced, with independent auditors verifying compliance. Penalties for non-compliance must also be significantly increased, making violations financially and legally prohibitive for developers and engineers who cut corners. Transparency and accountability are equally critical. CORBON (Council of Registered Builders of Nigeria) must ensure that only certified professionals oversee construction projects. Developers should be required to disclose approvals and insurance coverage before selling or leasing properties. Implementing an automated system for publicly accessible building plans, permits, and inspection reports can deter fraudulent practices. Additionally, independent certifiers must be closely monitored to prevent conflicts of interest, with stricter audits and disciplinary measures. Local governments must be empowered as frontline enforcers. They are responsible for zoning laws, issuing permits, and conducting inspections, but many lack the authority and resources to perform these tasks effectively. Strengthening their oversight role, granting them control over building approvals, and integrating digital tracking systems will reduce the prevalence of unregulated projects. Public engagement is also essential residents should be encouraged to report unsafe buildings, while awareness campaigns can educate property buyers and tenants on verifying a building’s regulatory status. Periodic stability tests should be mandatory, especially for older buildings. Government agencies must ensure that high-risk structures undergo routine inspections, while construction materials such as sand, cement, and steel should be tested before use to prevent structural failures. CORBON’s role in standardizing and improving construction techniques must be reinforced to enhance industry-wide compliance. Nigeria can learn from West African counterparts like Ghana, which established a National Building Inspectorate to conduct independent site audits, and Senegal, which imposed strict penalties and mandatory liability insurance for developers. By implementing stricter enforcement, improving oversight, strengthening local authorities, and mandating routine safety checks, Nigeria can finally break the cycle of preventable building collapses and build a safer future.

Conclusion

Nigeria’s building collapse crisis is more than a structural issue. it’s an economic threat. Unsafe buildings drive up reconstruction costs, deter investments, and weaken consumer confidence in real estate. A well-regulated construction sector can spur economic growth by creating jobs, attracting investors, and ensuring long-term infrastructure stability. By prioritizing enforcement, accountability, and professional standards, Nigeria can build not just safer structures but a stronger, more resilient economy.