Minister of State for Finance, Dr. Doris Uzoka-Anite, has urged the insurance sector to take a leading role in cushioning the economic shocks caused by climate change, noting that African nations are losing billions of dollars each year to climate-induced disasters.
At the ongoing West African Insurance Companies Association Educational Conference in Lagos, Uzoka-Anite, 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 financial crisis with dire implications for national budgets and economic stability.
She stated, “Traditional budgets can no longer cope. We must treat climate change as a financial imperative. 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.”
The minister also highlighted the Nigerian Insurance Industry Reform Act (NIIRA 2025) as a landmark policy aimed at transforming the industry and aligning it with Nigeria’s broader economic diversification agenda.
According to her, the new legislation enhances operators’ capital requirements, strengthens consumer protection, and broadens compulsory insurance to include key sectors such as agriculture, infrastructure, and environmental risk management.
Meanwhile, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, called on insurers and reinsurers across West Africa to embrace innovation, invest in climate intelligence and technology, and expand microinsurance coverage to the informal economy to build resilience across the region.
