An economist, Dr Muda Yusuf, has called for increased insurance adoption, stricter compliance with urban planning regulations and more effective oversight by regulatory agencies to reduce the economic and social impact of fire outbreaks in the country.
Yusuf made the call in an interview with reporters on Saturday while reacting to the recent fire outbreak at the Great Nigeria Insurance House in Lagos.
The incident, which occurred between Wednesday and Thursday, razed the entire building on Martins Street, Lagos Island, resulting in losses running into millions of naira and affecting many small and medium enterprises (SMEs).
He noted that recurring fire outbreaks in major commercial centres had become a growing threat to businesses, with weak safety compliance, poor urban planning and low insurance coverage worsening the scale of losses.
According to him, fire incidents often lead to the destruction of inventories, properties and business assets, with the impact usually severe because many SMEs do not insure their goods or premises.
Yusuf said the absence of a strong insurance culture among traders and small businesses makes recovery difficult, forcing many operators out of business after such disasters.
He described the outbreaks as highly disruptive and increasingly frequent, attributing the trend to poor adherence to safety standards and regulations in commercial areas.
The economist faulted the lack of effective oversight and enforcement by relevant safety agencies, noting that compliance with fire and building safety standards was almost non-existent in many locations.
He said most safety agencies only became visible after disasters had occurred, calling for a shift from reactive responses to proactive prevention and risk mitigation.
“Poor urban and town planning is a major contributor, particularly in congested areas such as Lagos Island, where buildings are closely packed with little or no regard for approved spacing standards.
“Town planning authorities and building control agencies need to strengthen monitoring and enforcement to prevent compromises.
“Congestion often makes it difficult for firefighters to access affected areas, allowing fires to spread rapidly and worsen losses,” he said.
Yusuf also called for accelerated urban renewal programmes, acknowledging that while demolitions might cause short-term losses, they were preferable to continued destruction from preventable disasters.
He urged the government to leverage private sector expertise to strengthen safety compliance frameworks and enforcement mechanisms.
According to him, decisive action, commitment and intentionality by government are required to break the cycle of recurring fire outbreaks.
The economist further advised traders and SMEs to embrace insurance as a critical risk management tool to cushion the impact of future incidents.
Meanwhile, a businesswoman in the affected building, Mrs Sherifat Azeez, lamented the loss of her goods to the fire.
She told bystanders that her husband, who was in the same line of business, had stored their recently purchased items in the building, all of which were destroyed.
“Where do we start from? We have been taken back to square one. What is my offense? My husband’s and my businesses are gone just like that. Where do we begin as a family?” she lamented.
Also speaking, a trader, Mr Lateef Babamole, whose shop was not affected, said the incident had left him worried about future occurrences, noting that survival often depended more on luck than preparedness.
He said many traders lost their entire stock within minutes, adding that poor market layout, lack of safety equipment and limited insurance coverage continued to expose businesses to similar risks.
According to him, little has changed since the incident, raising fears that another fire outbreak could result in even greater losses.
Babamole called on the government to take stock of traders who lost their livelihoods to the fire and support them with soft loans, while strengthening fire safety systems across markets in the state.
