The Federal Government has called on Nigerians to adopt insurance as a vital tool for mitigating the growing risks posed by climate change in the country and across the West African region.
The Minister of State for Finance, Dr. Doris Uzoka-Anite, made this call at the West African Insurance Companies Association (WAICA) Education Conference held recently in Lagos. She was represented at the event by Dr. Ali Mohammed, the Director of Home Finance at the Ministry of Finance.
Uzoka-Anite emphasized that climate change has evolved from being merely an environmental issue to a financial and developmental risk that requires urgent attention and innovative solutions.
Conference Focus: Insurers in the Face of Climate Change
The three-day conference, themed “The West African Insurer in the Face of Climate Change,” brought together insurance leaders, regulators, and policymakers from Nigeria, Ghana, Sierra Leone, Liberia, and The Gambia. Discussions focused on strengthening the role of the insurance industry in mitigating the socio-economic impacts of climate change across the subregion.
Speaking at the event, Uzoka-Anite noted that West Africa continues to face increasing climate-related challenges such as floods, droughts, and coastal erosion, which have devastated livelihoods, strained public finances, and threatened food security.
“Each disaster brings not only human tragedy but also heavy fiscal burdens,” she said. “This reality makes climate risk a macroeconomic concern requiring proactive financial planning. Insurance, therefore, becomes an indispensable mechanism for sharing and absorbing shocks that governments alone cannot handle.”
Nigeria’s Climate Finance Strategy
The minister explained that the Nigerian government is advancing a comprehensive climate risk management framework designed to strengthen fiscal resilience and accelerate disaster response.
“We must treat climate change not only as an environmental challenge but also as a financial imperative,” Uzoka-Anite stated. “Africa already loses billions annually to climate-related disasters. Traditional budgets can no longer absorb these losses.”
According to her, Nigeria is promoting mechanisms such as sovereign risk insurance, regional disaster risk pools, and public-private climate finance initiatives. These, she said, will enhance preparedness, ensure fiscal stability, and minimize disruptions to economic growth.
Regional Cooperation and Insurance Innovation
Uzoka-Anite called for stronger collaboration among West African nations through WAICA, identifying three key areas of partnership:
- Developing regional risk-pooling and reinsurance platforms.
- Expanding data and expertise on climate modelling and disaster forecasting.
- Building professional capacity to design innovative, sustainable insurance products.
She noted that such collaboration would transform insurance from a purely commercial venture into a strategic development enabler for critical sectors such as agriculture, trade, and small-scale enterprises.
“To achieve its full impact, insurance must reach everyone,” the minister concluded, stressing the need for deeper market penetration and inclusive risk protection across the region.
