Nigeria’s Minister of State for Finance, Doris Uzoka-Anite, has called on insurance firms in West Africa to unite against climate-related financial risks.
She made the appeal during the 2025 West African Insurance Companies Association (WAICA) Education Conference in Lagos. According to her, regional cooperation is vital to protect economies from the rising cost of extreme weather events.
Climate Change as a Financial Risk
Represented by Ali Mohammed, Director of the Home Finance Department, Uzoka-Anite said the theme “The West African Insurer Facing Climate Change” highlights a growing concern.
“Climate change is no longer only an environmental issue. It has become a serious financial and developmental threat,” she stated.
She added that storms, floods, and droughts affect several countries at once. Therefore, she said, “Our response must be collective and strategic.”
Moreover, she explained that climate risks now pressure national budgets and reduce economic stability.
Strength Through Regional Cooperation
Uzoka-Anite urged WAICA members to design joint risk-pooling and reinsurance mechanisms. This, she said, will help the region absorb major financial shocks.
In addition, she recommended sharing climate data and expertise to improve forecasting and preparedness. By working together, countries can act faster and recover quicker.
She also encouraged insurers to develop innovative insurance products that support agriculture, trade, and small businesses. “With the right products, insurance can fuel sustainable development,” she noted.
Growing Economic Burden of Disasters
Across West Africa, floods, droughts, and coastal erosion continue to destroy livelihoods. As a result, governments spend heavily on emergency recovery.
Uzoka-Anite explained that traditional budgeting alone cannot handle these rising costs. Instead, she said, insurance can provide a vital safety net.
Through shared risk platforms, insurers can help stabilize economies and protect communities from severe losses.
Nigeria’s Steps Toward Resilient Insurance
The minister highlighted the Nigerian Insurance Industry Reform Act 2025 as a key move toward modernization.
She revealed that Nigeria is also building climate finance frameworks, including sovereign risk insurance and public-private partnerships. These tools, she said, will improve response times and protect fiscal stability during crises.
Furthermore, she emphasized that the reforms aim to make the financial system stronger and more adaptable.
A Call to Collective Action
Uzoka-Anite reaffirmed Nigeria’s commitment to regional partnerships and policy alignment. She stressed that unity among insurers could drive real progress in the fight against climate risks.
“Together, we can make insurance a shield for our economies,” she said. “Cooperation will help West Africa build resilience and secure its future.”
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