Experts make case for climate insurance as floods batter Nigerian communities

As floods, droughts and heatwaves grow more frequent across Nigeria, insurance experts and environmental campaigners say a tool most households overlook could become central to how communities survive the climate crisis. Speaking at a World Environment Day 2026 webinar hosted by the Alliance for Positive Environmental Impact and Reforestation (APEARE), they argued that affordable, well-designed […]

As floods, droughts and heatwaves grow more frequent across Nigeria, insurance experts and environmental campaigners say a tool most households overlook could become central to how communities survive the climate crisis. Speaking at a World Environment Day 2026 webinar hosted by the Alliance for Positive Environmental Impact and Reforestation (APEARE), they argued that affordable, well-designed insurance can move families and farmers from ruin to recovery.

The forum, themed around insurance as a catalyst for climate resilience and the transition to a low-carbon economy, drew farmers, youth leaders, environmental professionals and policy voices. Its central message was clear: climate change is no longer a distant threat debated in conference halls, but a force already washing away homes, farms and livelihoods.

A Flooded Town as a Warning

The discussion opened with the recent flood disaster in Mokwa, Niger State. The session’s moderator, Augustina Oboh, who spent part of her childhood in the town, described a once-quiet farming community that was overwhelmed by water so severe that it was likened to a floating city. The example, speakers said, captured how quickly climate shocks can erase years of progress for ordinary people.

Cheaper Than a Car Policy

Guest speaker Geraldine Umeche, Divisional Managing Director at Mutual Aid Specialist (MAIDS) Microinsurance Limited, sought to dismantle the perception that insurance is an unaffordable luxury.

She noted that while private owner-occupied residential homes are generally not compulsory, they are strongly recommended. However, insurance for public buildings, tenement buildings above one floor, schools, hospitals, hotels, shopping complexes and buildings under construction is compulsory in Nigeria.

A single policy can respond to flood damage, a collapsed perimeter wall, a storm-damaged roof or the loss of income when a business is forced to close temporarily.

For farmers, Umeche outlined two options: full indemnity cover or index-based insurance that pays out automatically once an agreed trigger, such as drought, is recorded, sparing policyholders a drawn-out claims process.

From Payouts to Prevention

Responding to a participant who questioned whether insurance merely compensates victims after disaster strikes, Umeche argued that good insurance is designed to prevent the next loss.

Beyond payouts, she said, insurers educate clients on the risks around them, fund training, offer savings plans and provide cover that catches health problems early, so that a sudden hospital bill, including one tied to extreme heat, does not push a family into poverty.

Protection, she said, should be a continuous relationship rather than a one-time transaction.

A Lifeline for Restoration Projects

The conversation carried particular weight for organizations running nature-based solutions—the practice of using natural systems such as forests, wetlands and healthy soils to address climate change while supporting communities and biodiversity.

APEARE’s reforestation and agroforestry initiatives, including a UNDP GEF-SGP Nigeria project in Ajimaka and Rukubi, Nasarawa State, are designed to deliver benefits that build over many years. Projects on that timescale, however, are exposed to risks no organization can fully control.

A single season of drought, bushfire or flooding can threaten young trees, and such shocks often arrive after the funding cycle that established them has closed.

Umeche explained how business interruption cover and agricultural index insurance could give organizations the means to replant and honor their commitments even when extreme weather intervenes.

APEARE’s Board Chair and Founder, Wasiu Alimi, added that the low-carbon economy the country is trying to build cannot rely on the extractive habits of the past. He described reforestation as one of the tools that can help repair the relationship between communities and the climate, with insurance serving to protect that work.

A Shared Responsibility

Participants pressed for action beyond the insurance sector. Several called on government to invest in flood hazard mapping, river and weather monitoring and community-level vulnerability assessments so that early warnings reach people before disaster strikes.

Others cautioned that adding insurance to already tight project budgets could deter sponsors and urged insurers to design products tailored to environmental work rather than relying on generic policies.

Climate resilience, speakers agreed, is not the responsibility of any single group but a shared effort among governments, businesses, insurers, development organizations and individuals.

As one speaker put it, “When the rain falls, it does not spare any roof.”

APEARE and Mutual Aid Specialist said they would continue the dialogue, with the aim of integrating climate insurance into nature-based solutions ranging from green infrastructure and regenerative agriculture to solar energy installations.