- Lagos Launches Africa’s First Flood Risk Insurance Scheme
- Rolls Out $7.5m Insurance Cover for Vulnerable Communities
- Sets Model for Climate Resilience
Lagos State has launched what it describes as Africa’s first Flood Risk Insurance Policy, a landmark initiative aimed at protecting vulnerable residents from the financial impact of flooding and strengthening climate resilience.
Eko Hot Blog gathered that at the official unveiling held in Victoria Island, Governor Babajide Olusola Sanwo-Olu said the scheme represents a major shift from reactive disaster response to proactive risk management.
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“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,” he said.
Represented by Secretary to the State Government, Abimbola Salu-Hundeyin, the governor disclosed that the programme is expected to cover more than 4 million residents across seven high-risk local government areas, including Ajeromi-Ifelodun, Alimosho, Amuwo-Odofin, Apapa, Kosofe, Ojo and Somolu.
Under the scheme, payouts of up to $7.5 million per flood event are projected, with beneficiaries not required to pay premiums or complete complex documentation. The programme will rely on existing social registers such as the Lagos State Residents Registration Agency for identification.
Speaking at the event, Commissioner for Finance, Abayomi Oluyomi, described the initiative as a fiscal protection tool that would enable faster response and recovery from disasters.
He warned that climate-related risks, including rising sea levels and extreme rainfall, could cost Lagos as much as $40 billion by 2050 if not addressed.
“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,” Oluyomi said.
The initiative is supported by international partners, including the United Nations Development Programme and the European Union, with the German Government, through the InsuResilience Solutions Fund, covering 90 per cent of the premium in the first year, while Lagos State provides the remaining 10 per cent.
Special Adviser on Sustainable Development Goals, Oreoluwa Finnih, described the policy as a major step toward integrating climate risk into governance and financial planning.
“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.
Finnih added that the scheme uses satellite technology to improve transparency and will cover different types of flooding, including pluvial, fluvial and coastal events. It will also be integrated into the operations of the Lagos State Emergency Management Agency to ensure effective coordination and response.
Other partners involved in the initiative include the World Bank, African Development Bank, Insurance Development Forum, AXA Climate, Swiss Re and AXA Mansard, among others.
Officials say the programme is designed as a scalable model that could be adopted by other states and the federal government to strengthen disaster preparedness and protect vulnerable populations.
