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By Henry Uche
Amid rising climate threats and mounting fiscal pressures across the continent, the federal government has urged West African insurers to collaborate on innovative risk solutions that can protect lives, livelihoods and economies.
Minister of State for Finance, Dr. Doris Uzoka-Anite, made the call recently in Lagos at the 2025 Education Conference of the West African Insurance Companies Association (WAICA), themed; “The West African Insurer in the Face of Climate Change.”
She challenged insurance leaders across the sub-region to develop “regional risk-pooling and reinsurance platforms, exchange data and expertise on climate modelling and disaster forecasting, and build professional capacity for innovative, sustainable insurance products.”
According to Uzoka-Anite, climate change has moved beyond an environmental issue to become both a financial and developmental threat.
“Across West Africa, floods, droughts, and coastal erosion are already destroying livelihoods, straining public finances, and threatening food security. Each disaster brings not only human tragedy but also heavy fiscal burdens,” she said.
She stressed that climate risk is now a macroeconomic concern that demands proactive financial planning.
“Insurance, therefore, becomes indispensable, a mechanism to share and absorb shocks that governments alone cannot shoulder.”
Uzoka-Anite reaffirmed the government’s recognition of insurance as a vital pillar of Nigeria’s financial system, alongside banking, capital markets, and pensions.
She noted that the Nigerian Insurance Industry Reform Act (NIIRA 2025) represents a major step toward modernisation.
“The Act strengthens the capital base of insurers, enhances consumer protection, expands compulsory insurance to critical sectors such as agriculture and infrastructure, and integrates insurance into public–private partnerships for climate resilience,” she explained.
Beyond reforms, she said NIIRA 2025 signals Nigeria’s resolve to build a credible, transparent, and inclusive insurance industry aligned with national economic diversification goals.
“We must treat climate change not only as an environmental challenge but also as a financial imperative. Africa already loses billions annually to climate-related disasters. Traditional budgets can no longer cope,” she warned.
The minister disclosed that Nigeria is developing frameworks that combine sovereign risk insurance, regional disaster-risk pools, and public–private climate-finance mechanisms to guarantee fiscal stability and swift response during disasters.
“No nation can confront this threat alone. The same storms that affect Nigeria affect Ghana, Sierra Leone, Liberia, and The Gambia. Our solutions must be collective,” she urged.
Uzoka-Anite added that regional cooperation would transform insurance “from a business venture into a development enabler for agriculture, trade, and small enterprises.”
She also emphasised the need for micro-insurance, digital solutions, and parametric products that deliver instant payouts based on verified data.
“By doing so, we expand coverage, deepen financial inclusion, and strengthen resilience at the grassroots, which remains a priority of the Federal Ministry of Finance,” she said.
Reaffirming the government’s commitment to sectoral growth, Uzoka-Anite stated: “The Federal Government remains steadfast in building a strong, competitive, and sustainable insurance sector. We are committed to ensuring effective coordination among ministries, regulators, and financial institutions; aligning fiscal and insurance policies; and forging global partnerships to enhance our climate-response capacity.”
According to experts, a resilient insurance sector underpins a resilient economy, one capable of absorbing shocks and sustaining growth”
She admonished WAICA to safeguard its people and economies against the uncertainty of climate change. Noting: “Through sound governance, strong regulation, and regional collaboration, we can make insurance a cornerstone of West Africa’s sustainable development story”.
