Lagos launches flood insurance scheme for vulnerable residents
The Lagos State Government has launched a pioneering flood risk insurance scheme aimed at protecting about four million vulnerable residents across seven flood-prone communities. The Governor of Lagos State, Babajide
The Lagos State Government has launched a pioneering flood risk insurance scheme aimed at protecting about four million vulnerable residents across seven flood-prone communities.
The Governor of Lagos State, Babajide Sanwoolu, formally unveiled the Lagos Flood Risk Insurance Project on Wednesday, at Radisson Blu Hotel.
Represented by the Secretary to the State Government, Bimbola Salu-Hundeyin, Sanwoolu described it as a landmark intervention designed to move the state from reactive disaster response to proactive risk management.
He said the initiative reflects his administration’s commitment to building resilient systems capable of mitigating shocks before they escalate into humanitarian crises.
“Every rainy season, our communities experience flooding that submerges homes, displaces families, and destroys livelihoods. In October last year alone, over 3,000 Lagosians were displaced, with more than 6,000 affected within nine months. These are not just numbers; they are our people,” he said.
He noted that the newly introduced policy is Nigeria’s first sub-sovereign parametric flood insurance solution, designed to trigger automatic payouts once pre-agreed flood thresholds are reached, eliminating delays associated with traditional claims processes.
Under the scheme, up to $7.5 million can be disbursed in a single flood event to support emergency response, infrastructure recovery, and direct cash transfers to affected households.
“This is not just insurance; it is a safety net positioned under those who need it most,” the governor said, adding that beneficiaries would not be required to pay premiums or complete complex documentation, as the government has already undertaken the financial responsibility.
He urged residents, particularly traders and artisans, to ensure their details are updated with the Lagos State Residents Registration Agency to enable seamless access to relief when disasters occur.
The project is being co-funded by the InsuResilience Solutions Fund, supported by the German government through KfW Development Bank, which is covering 90 per cent of the first-year premium, while Lagos State contributes the remaining 10 per cent.
Sanwo-Olu, however, stressed that the state would progressively increase its financial commitment in subsequent years to ensure sustainability.
“We are not building a donor-dependent programme but a permanent climate risk financing institution that will outlive this administration,” he said.
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Also speaking, the Resident Representative of the United Nations Development Programme, Elsie Attafuah, commended the Lagos State Government for demonstrating leadership and ownership in driving the initiative.
She described the scheme as a scalable model that could be replicated across Nigeria and beyond, noting that communities nationwide are increasingly exposed to climate-induced disasters.
“The Lagos Flood Risk Insurance Solution provides a blueprint for building sustainable and scalable risk management systems. This is not the end but the beginning of a new approach to managing climate risk,” Attafuah said.
The Special Adviser to the Governor on Sustainable Development Goals, Dr. Ore Finnih, explained that the scheme represents a paradigm shift from post-disaster funding to pre-arranged, data-driven financing.
According to her, the parametric model relies on satellite-enabled verification systems to ensure transparency and rapid response once flood levels exceed defined thresholds.
She listed the benefiting local government areas to include Alimosho, Ajeromi-Ifelodun, Amuwo-Odofin, Apapa, Kosofe, Somolu, and Ojo, noting that the initiative aligns with global Sustainable Development Goals on poverty reduction, sustainable cities, and climate action.
Secretary General of the Insurance Development Forum, Ekhosuehi Iyahen, described the project as a “landmark achievement” not only for Lagos and Nigeria but for global climate resilience efforts.
She said the initiative demonstrates a transition from emergency borrowing and donor dependence to structured financial preparedness, enabling governments to respond to disasters within days rather than months.
Managing Director of AXA Mansard, Kunle Ahmed, also hailed the project as a significant milestone for Nigeria’s insurance sector, noting that parametric insurance offers a faster and more efficient mechanism for managing disaster risks.
