By Philomina Attah
As NEMA, Africa Re partner to create awareness on risk transfer mechanism
Disaster risk management experts have called for risk transfer mechanisms, such as insurance, to ensure swift recovery and business continuity after disasters.
Director-General, National Emergency Management Agency, NEMA, Mrs Zubaida Umar, made the call at a disaster risk financing workshop put together by NEMA and African Reinsurance Corporation in Abuja on Thursday.
The event was aimed to change Nigeria’s approach to disaster management by employing innovative insurance mechanisms and enhanced public-private collaboration.
Mrs Umar, 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 who was represented by Mr Idris Mohammed, Director, Disaster Risk Reduction at NEMA noted that the increase in frequency and severity of disasters in Nigeria, including floods, building collapses, insurgency, and resource-based conflicts, was alarming, so bringing on insurance as a vital tool for disaster recovery, in line with Nigeria’s National Disaster Recovery Plan and the Sendai Framework, is the way to go.
Umar although acknowledged challenges of low insurance uptake due to high premiums and limited awareness, but expressed hope that the assembled experts would address the issues.
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.
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 such as improved early warning systems, and parametric insurance to address Nigeria’s challenges.
Omosehin also addressed misconceptions about NAICOM’s name and advocated 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)
Follow us on all social media platforms @dailyquery for news and analyses around the globe.
