The Lagos State Government has unveiled Nigeria’s first parametric flood insurance policy, a $7.5 million climate risk protection scheme designed to support vulnerable communities and strengthen disaster response across the state.
Governor Babajide Olusola Sanwo-Olu, represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, launched the initiative on April 29, 2026, at the Radisson Blu Hotel, describing it as a major shift from reactive to proactive disaster management.
The Lagos Flood Risk Insurance Policy, developed through a partnership involving the state government, the United Nations Development Programme, Insurance Development Forum, and the German government through the KfW Development Bank, is designed to provide immediate financial support when flooding occurs.
According to the governor, the scheme is Nigeria’s first sub-sovereign climate risk transfer solution, relying on satellite data and flood modelling to trigger automatic payouts once pre-defined flood thresholds are met.
“It does not wait for damage assessments or lengthy claims processes. Once flood triggers are activated, funds are released automatically, enabling rapid deployment of relief and direct cash transfers to affected communities,” he said.
The policy targets up to four million vulnerable residents across seven pilot local government areas, Alimosho, Ajeromi-Ifelodun, Amuwo-Odofin, Apapa, Kosofe, Somolu and Ojo.
Sanwo-Olu noted that the InsuResilience Solutions Fund is funding 90 per cent of the first-year premium, with the state government contributing the remaining 10 per cent and committing to increased funding over time to ensure sustainability.
He urged residents, particularly in flood-prone areas, to update their records with the Lagos State Residents Registration Agency to facilitate seamless disbursement of support.
Also speaking, the Commissioner for Finance, Abayomi Oluyomi, said the insurance payout mechanism would be integrated into the state’s social protection framework using LASRRA data to identify beneficiaries.
The Special Adviser on Sustainable Development Goals, Oreoluwa Finnih, described the initiative as a data-driven approach aligned with global sustainability targets, particularly those focused on poverty reduction, resilient cities and climate action.
Development partners including the World Bank, African Development Bank, European Union, as well as private sector players such as AXA Climate and Swiss Re, were also commended for their technical and financial contributions.
The initiative is expected to enhance Lagos’ resilience to climate shocks, improve emergency response timelines, and provide a financial safety net for millions of residents vulnerable to flooding.
