LAGOS STATE LAUNCHES AFRICA'S FIRST FLOOD RISK INSURANCE POLICY TO PROTECT VULNERABLE RESIDENTS
Lagos State has taken a historic step toward climate resilience and social protection with the official launch of its pioneering Flood Risk Insurance Policy - the first initiative of its kind in Africa. The scheme is designed to deliver rapid financial support to vulnerable residents affected by flooding.
Speaking at the high-level launch event held at the Radisson Blu Hotel, Victoria Island, Governor Babajide Olusola Sanwo-Olu described the initiative as a bold shift from reactive disaster response to proactive risk management. He reaffirmed the State’s commitment to safeguarding lives, livelihoods, and critical infrastructure.
“This initiative represents a decisive change in how we address climate risks. It ensures that when floods occur, support reaches affected communities swiftly, transparently, and with dignity,” the Governor stated.
Represented by the Secretary to the State Government, Barr. Abimbola Salu-Hundeyin, Mr. Governor noted that the scheme is expected to 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 with potential payouts of up to $7.5 million per flood event.
He emphasised that beneficiaries will not be required to pay premiums or complete complex documentation, as the programme is fully funded by the State Government and uses existing social registers, including the Lagos State Residents Registration Agency (LASSRA), for identification and support. The Governor also called on the federal government and other subnational entities to adopt similar models, describing the Lagos initiative as a scalable blueprint for protecting vulnerable populations nationwide.
In his welcome address, the Honourable Commissioner for Finance, Mr. Abayomi Oluyomi highlighted the initiative’s strategic importance as a fiscal protection mechanism. He explained that it enables the government to respond faster, protect more people, and recover more efficiently from flood events. He noted that Lagos, as a coastal megacity, faces growing exposure to climate‑induced risks such as sea‑level rise and extreme rainfall, with projections suggesting that climate inaction could cost the State up to $40 billion by 2050.
“This scheme is not just insurance. It is a resilience tool and a clear signal that Lagos is committed to long‑term, forward‑looking planning in the face of climate change,” the Commissioner stated.
He further acknowledged the strong partnership behind the initiative, particularly the support of the German Government through the InsuResilience Solutions Fund, which is covering 90 per cent of the insurance premium in the first year, while Lagos State contributes the remaining 10 per cent. He described the collaboration originating from engagements at COP27 in Sharm El Sheikh, as a testament to the power of global partnerships in addressing shared climate challenges.
Also speaking, the Special Adviser to the Governor on Sustainable Development Goals, Dr. Oreoluwa Finnih described the scheme as a transformative milestone in Lagos State’s journey toward fiscal sustainability and inclusive governance. She noted that the initiative aligns with global best practices in disaster risk financing and reinforces Lagos State’s leadership in climate finance innovation at the subnational level.
“Climate risk is not only an environmental concern; it is a fiscal reality. This initiative embeds resilience into governance systems, ensuring that we are financially prepared before disasters occur,” she said.
Dr. Finnih explained that the scheme is supported by satellite technology to ensure transparency and objectivity, and is designed to address multiple flood types, pluvial, fluvial, and coastal flooding, while supporting both household‑level relief and the restoration of critical infrastructure. She stressed the importance of emergency management for efficient coordination and targeted assistance, stating that the Flood Risk Insurance Scheme will be integrated into the operational framework of the Lagos State Emergency Management Agency (LASEMA).
The Resident Representative of the United Nations Development Programme (UNDP) Nigeria, Ms. Elsie Attafuah, represented by the Deputy Resident Representative, Mr. Blessed Chidimuta also delivered remarks. In her goodwill message, the Secretary-General of the Insurance Development Forum (IDF), Ms. Ekhosuehi Iyahen described the initiative as groundbreaking.
This landmark initiative results from extensive collaboration between the Lagos State Government and key development and private sector partners, including the United Nations Development Programme (UNDP), the European Union, the German Government, the World Bank, the African Development Bank, the Insurance Development Forum (IDF), AXA Climate, Swiss Re, AXA Mansard, Africa Risk Capacity Limited, JBA Risk Management, and ICEYE.
The event was well attended by key stakeholders, including members of the State Executive Council, Permanent Secretaries, the German Head of Corporation Nigeria, Dr. Karin Jansen, the Managing Director of AXA Mansard, Mr. Kunle Hamed, as well as underwriters and observers from UNDP, BMZ, IDF, NAICOM, NIA, NCRIB, CIIN, Africa Re, and ALGON
As Lagos continues to invest in forward‑looking policies and innovative solutions, the Flood Risk Insurance Scheme stands as a clear demonstration of the State’s commitment to building a resilient, inclusive, and future‑ready megacity.
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