Home / Environment / Lagos Buys Flood Insurance for Millions
Lagos Buys Flood Insurance for Millions
27 Mar
Summary
- Lagos secured a $7.5 million flood insurance policy.
- The policy covers up to four million people in seven local government areas.
- Germany financed 90 percent of the insurance premium through a fund.
Lagos, Nigeria's bustling mega-city, has procured a $7.5 million flood insurance policy to protect over four million residents. This proactive measure addresses the growing threats posed by climate change, including rising sea levels and unpredictable rainfall.
The insurance scheme specifically targets seven local government areas, providing crucial support through disaster relief funds and direct cash transfers. A notable aspect of this policy is its financing, with the InsuResilience Solutions Fund, backed by Germany, covering 90 percent of the premium costs.
Governor Babajide Olusola Sanwo-Olu highlighted the severe economic implications of climate change, estimating potential losses of $40 billion for the state government by 2050. The policy, a parametric flood insurance, aims to expedite payouts based on predefined triggers, such as rainfall measurements, which is vital for a city with a low insurance penetration rate where many households are low-income.
