The Lagos State Government has launched Africa’s first Flood Risk Insurance Policy, marking a major step toward climate resilience and social protection for vulnerable residents across the state.
Eko Hot News reports that the initiative was unveiled at Radisson Blu Hotel, where Governor Babajide Olusola Sanwo-Olu described the scheme as a forward-looking solution designed to provide quick financial support to residents affected by flooding.
The Governor noted that the policy represents a transition from emergency response to proactive risk management. He said the initiative is aimed at protecting lives, livelihoods, and critical infrastructure across Lagos.
Represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, the Governor explained that the scheme will cover over four million vulnerable residents in seven high-risk local government areas. These include Ajeromi-Ifelodun, Alimosho, Amuwo-Odofin, Apapa, Kosofe, Ojo, and Somolu.
He added that the programme offers potential payouts of up to $7.5 million per flood event. The initiative is structured to ensure timely and transparent support for affected communities.
The Governor emphasised that beneficiaries will not be required to pay premiums or complete complex processes. He explained that the programme is fully funded by the state government and leverages data from the Lagos State Residents Registration Agency for identification and distribution of support.
He also encouraged the federal government and other states to adopt similar approaches. According to him, the Lagos model provides a scalable framework for protecting vulnerable populations across Nigeria.
In his remarks, the Commissioner for Finance, Abayomi Oluyomi, described the scheme as a strategic fiscal protection tool. He said it would enable the government to respond faster and recover more efficiently from flood-related challenges.
He highlighted that Lagos, as a coastal megacity, faces increasing exposure to climate risks such as rising sea levels and heavy rainfall. He added that projections suggest climate inaction could cost the state up to $40 billion by 2050.
Mr. Oluyomi noted that the initiative reflects Lagos State’s commitment to long-term planning and resilience. He described it as a practical solution that integrates financial preparedness into governance systems.
The programme is supported through a partnership with the German Government under the InsuResilience Solutions Fund. The fund covers 90 percent of the insurance premium in the first year, while Lagos State provides the remaining 10 percent.
Officials said the collaboration emerged from global climate discussions, including engagements at COP27. It highlights the importance of international partnerships in addressing climate-related challenges.
Also speaking, the Special Adviser on Sustainable Development Goals, Oreoluwa Finnih, described the initiative as a milestone in climate finance innovation. She noted that it strengthens fiscal sustainability and supports inclusive governance.
Dr. Finnih explained that the scheme uses satellite technology to ensure transparency and accuracy in identifying flood events. She added that it covers different types of flooding, including pluvial, fluvial, and coastal scenarios.
She further stated that the programme will support both household relief and the restoration of essential infrastructure. The initiative will also be integrated into the operational framework of the Lagos State Emergency Management Agency for effective coordination.
Representatives from global organisations also commended the initiative. Officials from the United Nations Development Programme and the Insurance Development Forum described it as a model for innovative climate risk management.
The project is backed by several partners, including the European Union, the German Government, the World Bank, the African Development Bank, AXA Climate, Swiss Re, AXA Mansard, Africa Risk Capacity Limited, and other stakeholders.
The launch event attracted top government officials, development partners, and industry leaders. Participants highlighted the importance of collaboration in delivering sustainable solutions for urban resilience.
The Lagos State Government reaffirmed its commitment to building a resilient and inclusive megacity. Officials noted that the Flood Risk Insurance Scheme represents a significant step in preparing for climate-related challenges while protecting residents.
Stakeholders expressed optimism that the initiative will improve response systems and strengthen social protection mechanisms. The programme is expected to serve as a benchmark for other regions seeking innovative climate solutions.
