By Abdullahi Lukman
The Minister of State for Finance, Dr. Doris Uzoka-Anite, has charged the insurance industry in West Africa to take a leading role in addressing the economic fallout of climate change, warning that African countries are losing billions of dollars annually to climate-related disasters.
Speaking at the ongoing West African Insurance Companies Association (WAICA) Educational Conference in Lagos on Monday, the minister, who was represented by Dr. Ali Mohammed, Director of Home Finance at the Federal Ministry of Finance, stressed that climate change should no longer be viewed solely as an environmental issue, but as a major financial risk to national budgets and economic stability.
“Traditional budgets can no longer cope. We must treat climate change as a financial imperative,” she said.
“That is why Nigeria is advancing frameworks that combine sovereign risk insurance, regional disaster-risk pools, and public–private climate-finance mechanisms to ensure fiscal stability and rapid response.”
She noted that the Nigerian government is moving to strengthen the insurance sector as part of its broader economic diversification strategy.
A key component of this effort is the forthcoming Nigerian Insurance Industry Reform Act (NIIRA 2025), which aims to modernize the sector.
Uzoka-Anite said the new legislation will enhance the capital base of insurance operators, improve consumer protection, and expand compulsory insurance coverage to critical areas such as agriculture, infrastructure, and environmental risk management.
Also speaking at the event, the Commissioner for Insurance, Olusegun Ayo Omosehin, encouraged insurers and reinsurers in the region to innovate boldly, invest in climate data and technology, and scale up microinsurance to better serve the informal sector.
He noted that strengthening insurance penetration, particularly among vulnerable populations, would be crucial in building financial resilience against the growing threats of climate change.
The WAICA Educational Conference brought together key stakeholders from across the West African insurance market to discuss emerging challenges and strategic opportunities in the face of global climate and economic pressures. END