NEMA, Africa Re partner to enhance disaster risk financing

By Philomina Attah

The National Emergency Management Agency (NEMA) and African Reinsurance Corporation (Africa Re) jointly convened a disaster risk financing workshop in Abuja on Thursday.

The News Agency of Nigeria (NAN) reports that the event aimed to transform Nigeria’s approach to disaster management through innovative insurance mechanisms and enhanced public-private collaboration.

Mrs Zubaida Umar, Director-General of NEMA, revealed that during the 2024 rainy season, floods affected over 1.3 million people across 34 states, displacing more than 740,000 individuals and causing major loss of life and livelihoods.

She was represented by Mr Idris Mohammed, Director of Disaster Risk Reduction at NEMA.

Umar noted the increasing frequency and severity of disasters in Nigeria, including floods, building collapses, insurgency, and resource-based conflicts.

She stressed the need for risk transfer mechanisms, such as insurance, to ensure swift recovery and business continuity after disasters.

Umar acknowledged challenges such as low insurance uptake due to high premiums and limited awareness, but expressed hope that the assembled experts would address these issues.

She called for the mainstreaming of insurance as a vital tool for disaster recovery, in line with Nigeria’s National Disaster Recovery Plan and the Sendai Framework.

Mr Ken Aghoghovbia, Deputy Managing Director/CEO of Africa Re, stated that the 2022 floods displaced 1.3 million people, causing economic losses of 9.6 billion dollars.

He emphasised the need for proactive disaster financing strategies and suggested that public-private partnerships could play a key role in developing a robust disaster risk financing strategy for Nigeria, including insurance solutions.

Aghoghovbia explained that key discussions would focus on leveraging insurance solutions to complement government efforts, exploring policy frameworks, prioritising investments, and building technical capacity within Nigeria’s insurance industry.

He noted that flooding remains the dominant disaster in Nigeria, with 2024 floods affecting over 33 states and displacing more than 700,000 people.

He pointed out that the devastating floods in Borno and Kogi states were mainly caused by heavy rains and the release of excess water from the Alau and Lagdo dams.

The Permanent Secretary of the Federal Ministry of Petroleum Resources, Mr Nicholas Ella, stressed the importance of adopting proactive disaster preparedness measures.

Reflecting on his 30 years in the Foreign Service, he underscored the impact of both natural and man-made disasters.

Ella emphasised that financial preparedness is crucial for effective disaster management, citing the swift response to California’s wildfires as an example.

He stated: “The fear that we cannot do anything is our greatest disaster. I urge stakeholders to prioritise readiness over reaction”.

Ella called for robust financial mechanisms, such as insurance-backed strategies, to mitigate risks and ensure a rapid response during crises.

Mr Olusegun Omosehin, Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), noted the role of insurance in mitigating disaster impacts.

He highlighted that preparedness and risk financing could reduce response costs and outlined NAICOM’s commitment to a national risk strategy, improved early warning systems, and parametric insurance to address Nigeria’s challenges.

Omosehin also addressed misconceptions about NAICOM’s name and advocated for greater public awareness of its mission.

He urged stakeholders to collaborate and leverage insurance as a tool for resilience, ensuring Nigeria is better equipped to handle both natural and man-made disasters.

NAN also reports that participants from government, academia, and industry discussed strategies to enhance financial resilience, including using NEMA’s data on disaster losses.

The workshop brought together over 50 senior decision-makers from both the government and private sectors to address the rising frequency and severity of disasters affecting Nigeria, particularly flooding. (NAN) www.nannews.ng