Lagos, Nigeria – The Lagos State Government has secured a $7.5 million parametric flood insurance policy to help protect up to four million residents from climate‑related disasters. The cover is designed to speed up financial relief after major floods in the coastal city.
Okay News reports that the policy was activated under the Tripartite Agreement Programme, a partnership between the Insurance Development Forum, the United Nations Development Programme, and Germany’s Federal Ministry for Economic Cooperation and Development. The project is partly funded through the InsuResilience Solutions Fund.
Governor Babajide Sanwo‑Olu said inaction on climate change could cost Lagos nearly $40 billion by 2050. He described the policy as a way to protect lives, livelihoods, and public finances while embedding climate‑risk planning into the state’s long‑term development. The parametric design means payouts are triggered by pre‑set flood parameters, not lengthy damage assessments.
The cover was designed by IDF member insurers such as AXA Climate, AXA Mansard Nigeria, Swiss Re, and specialized partners like JBA Risk Management and ICEYE. In Nigeria, agencies including the Office of Sustainable Development Goals, the Ministry of Finance, and the Lagos State Emergency Management Agency are also involved in implementation.
Lagos faces frequent flooding every rainy season, with low‑income communities often bearing the heaviest losses. The new insurance plan builds on existing efforts such as a two‑year flood‑management strategy that links lakes, canals, and pumps into a Blue‑Green Network to store and slowly release rainwater. Officials say the scheme offers a model other coastal cities can adapt to become more climate‑resilient.
