By David Akinmola
In a major step toward mitigating the devastating impact of climate change, the Federal Government has officially launched a national flood insurance policy aimed at protecting individuals, businesses, and communities vulnerable to recurring flood disasters across Nigeria.
The initiative, unveiled at a high-level climate resilience forum in Abuja, is designed to provide swift financial relief and support recovery efforts for victims of floods — a growing threat that has caused loss of lives, displaced thousands, and inflicted billions of naira in damages over the past decade.
The new flood insurance policy, developed in collaboration with the National Insurance Commission (NAICOM), Nigerian Meteorological Agency (NiMet), and several leading underwriters, will offer structured coverage for residential properties, commercial enterprises, agricultural investments, and public infrastructure.
Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, who represented President Bola Tinubu at the launch, said the policy was part of the administration’s broader disaster risk reduction strategy and commitment to building a climate-resilient nation.
“Floods have become a recurring nightmare in many Nigerian communities. This policy is a lifeline to protect livelihoods, stabilize communities, and promote faster recovery after disasters,” Dr. Edu said. “It is also a clear signal that the government is moving from reactive disaster response to proactive risk management.”
According to NAICOM, the flood insurance scheme will be offered at subsidized premiums to make it affordable for low-income households and vulnerable small businesses, particularly in high-risk flood zones. The policy will cover direct losses from flood-related damages, temporary displacement costs, and, in some cases, loss of income for affected businesses.
Commissioner for Insurance, Mr. Olusegun Omosehin, noted that the product was developed with extensive stakeholder consultation and risk mapping, adding that insurers will work closely with state governments and emergency agencies to ensure widespread uptake and prompt claims settlement.
“This is not just an insurance policy. It’s an economic safeguard,” Omosehin said. “With growing exposure to climate risks, particularly from flooding, we must deploy innovative financial solutions that shield our people and assets.”
Recent data from NiMet shows that over 30 states in Nigeria are at risk of significant flooding in the 2025 rainy season. The 2022 floods alone displaced over 1.4 million people and caused more than ₦700 billion in damages to homes, farms, and infrastructure.
Experts and stakeholders at the launch welcomed the policy, describing it as timely and essential for improving disaster preparedness and boosting the insurance penetration rate in Nigeria, which remains below 2% of GDP.
They also called for aggressive awareness campaigns, digital enrollment platforms, and community-based insurance models to drive adoption, especially in rural and underserved regions.
“The real success of this policy will depend on access, awareness, and trust,” said Dr. Halima Sani, a climate adaptation specialist. “If well implemented, this could be a game-changer for inclusive climate resilience in Nigeria.”
The Federal Government said the rollout would begin with pilot schemes in flood-prone states including Kogi, Bayelsa, Anambra, and Benue, before expanding nationwide.
