The Lagos State Government has introduced a flood risk insurance policy designed to provide quick financial assistance to residents affected by flooding across the state.
Governor Babajide Sanwo-Olu announced the initiative at its official launch, saying it marks a shift from delayed disaster response to a proactive system that ensures immediate support when flood levels reach predefined thresholds.
He was represented by the Secretary to the State Government, Mrs. Bimbola Salu-Hundeyin.
According to the governor, the parametric insurance model will enable automatic payouts based on verified satellite data and flood modelling, removing the delays associated with traditional claims processes.
He said the scheme will provide direct cash transfers and emergency support to affected communities, with about four million vulnerable residents across seven local government areas expected to benefit in the first phase.
Sanwo-Olu added that the policy offers up to $7.5 million in coverage per flood event and does not require beneficiaries to pay premiums, as it is structured as a state-backed protection programme.
He noted that the government will use existing social and residency databases to quickly identify and reach affected persons during emergencies, urging residents—especially traders and artisans—to update their records.
The initiative is co-funded by the InsuResilience Solutions Fund, which is covering 90 per cent of the first-year premium, while the state government provides the remaining 10 per cent.
Officials say the contribution structure will be gradually adjusted to ensure long-term sustainability.
The Commissioner for Finance, Mr. Abayomi Oluyomi, described the scheme as a tool to strengthen fiscal resilience and ensure rapid recovery after climate shocks, while UNDP representatives called it a major step forward in disaster preparedness and climate adaptation.
The pilot phase will cover Ajeromi-Ifelodun, Shomolu, Alimosho, Amuwo-Odofin, Apapa, Kosofe, and Ojo Local Government Areas.