Nigeria's National Emergency Management Agency (NEMA) has sounded the necessity to explore risk financing options that will guarantee early recovery from disasters and business continuity.
NEMA director general, Ms Zubaida Umar, aired this message at a workshop on Joint Financing, organised by NEMA in collaboration with Africa Reinsurance Corporation in Abuja, Nigeria, according to a report by the state-controlled international broadcasting station Voice of Nigeria.
“Annual floods, windstorms, ocean surge coupled with recurrent fire outbreaks, building collapse, boat mishaps, insurgency, resource-based conflicts amongst others have compelled governments at all levels to invest huge resources in emergency relief and post-disaster recovery interventions”, she said.
However, she noted that in Nigeria, the situation has become more complex with the protracted insurgency, banditry, and communal conflicts in some states of the federation.
She said, “This has made it imperative for NEMA to explore risk financing options that will guarantee early recovery and business continuity in the aftermath of socio-economic dislocations as a result of disasters.
“It’s our firm belief that this paradigm shift has become more imperative in the face of dwindling resources for disaster recovery in addition to other equally important and yet competing demands on government”.
Catastrophe management
Also speaking at the workshop, Africa Re’s deputy MD and COO, Mr Ken Aghoghoobia, said that catastrophe management involves a wide range of coordinated activities with the core objective of swiftly reducing the impact of such events.
This undertaking, he said, requires timely access to both financial and technical resources, highlighting the need to explore innovative ways for effective disaster management in Nigeria.
Stressing that no single stakeholder can achieve the national objectives of disaster management alone, he said, “We believe that, as is done in many places, there is room for public-private partnerships in developing a robust disaster risk financing strategy for Nigeria, which includes insurance solutions.”
He said, “While Nigeria is exposed to both natural and man-made disasters, flooding continues to dominate its disaster landscape. In 2024, over 33 states in Nigeria reported flooding incidents with displacement of over 700,000 people and destruction of several properties and farmlands.”
In 2022 alone, catastrophic floods affected over 30 states, resulting in more than 600 fatalities, displaced approximately 1.3m people, and generated economic losses estimated at $9.6bn. The 2022 floods happened even before the country recovered from the 2020 Gombe and Jigawa floods.
Mr Aghoghoobia said, “These recurring disasters underscore the critical need to shift from reactive approaches to proactive disaster risk financing mechanisms.”