Lagos launches Africa’s first Flood Risk Insurance Scheme for vulnerable residents

Cityscope, Politics, Weather

LAGOS, Nigeria (NPA) — The Lagos State Government has launched what it described as Africa’s first Flood Risk Insurance Policy aimed at providing rapid financial assistance to vulnerable residents affected by flooding across the state.

Governor Babajide Olusola Sanwo-Olu described the initiative as a major shift from reactive disaster response to proactive climate risk management, saying the programme was designed to protect lives, livelihoods and critical infrastructure in flood-prone communities.

Speaking during the launch at the Radisson Blu Hotel, Sanwo-Olu said the insurance policy would ensure support reaches flood victims swiftly and transparently whenever disasters occur.

Represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, the governor disclosed that the scheme would cover more than four million vulnerable residents across seven high-risk local government areas, including Ajeromi-Ifelodun, Alimosho, Amuwo-Odofin, Apapa, Kosofe, Ojo and Somolu.

According to the state government, the programme provides potential payouts of up to $7.5 million for each flood event.

Sanwo-Olu noted that beneficiaries would not pay premiums or complete complicated documentation processes, explaining that the initiative is fully funded by the state government using existing social registers, including the Lagos State Residents Registration Agency database.

He also urged the Federal Government and other states to adopt similar models to strengthen climate resilience nationwide.

Commissioner for Finance Abayomi Oluyomi described the initiative as a strategic fiscal protection mechanism capable of improving emergency response and post-disaster recovery.

He warned that Lagos remains increasingly vulnerable to climate-related threats such as sea-level rise and extreme rainfall, with projections suggesting climate inaction could cost the state up to $40 billion by 2050.

The commissioner disclosed that the German Government, through the InsuResilience Solutions Fund, would finance 90 percent of the insurance premium in the first year, while Lagos State covers the remaining 10 percent.

Special Adviser to the Governor on Sustainable Development Goals, Oreoluwa Finnih, described the programme as a major milestone in promoting fiscal sustainability and climate resilience.

Finnih said the scheme would deploy satellite technology for transparency while covering pluvial, fluvial and coastal flooding.

The programme will also support direct household relief and restoration of damaged public infrastructure through integration with the Lagos State Emergency Management Agency.

Representatives of the United Nations Development Programme, the European Union, the German Government, the World Bank and the African Development Bank attended the launch event alongside private sector insurance partners.

Officials said the initiative emerged from collaborations developed after engagements at COP27 in Sharm El Sheikh, Egypt, as part of efforts to build a resilient and future-ready Lagos.