The Federal Government of Nigeria has adopted a National Flood Insurance Policy (NFIP) to address the growing threat of flood-related disasters across the country.
The announcement was made during the Technical Committee Meeting (TCM) on the Development of the National Flood Insurance Policy and Implementation Framework, held on Thursday, June 26, 2025, in Abuja.
The NFIP is designed to reduce the financial burden currently borne by federal and state governments for emergency relief efforts and post-disaster reconstruction. The policy represents a shift from reactive responses to proactive and sustainable flood risk management strategies. It is a central component of Section Four of the National Erosion and Flood Control Policy (NEFCOP).
As a financial safety net, the NFIP will support individuals, businesses, and communities in recovering from flood-induced losses while promoting long-term resilience. The policy framework includes clear implementation timelines, designated responsibilities, and monitoring mechanisms to ensure effective execution.
Flood insurance is being prioritized as a preparedness mechanism, enabling the creation of an emergency fund through advanced contributions. The aim is to mitigate the enormous economic and human toll caused by recurring floods, particularly in agrarian communities along the River Benue, River Niger, and their tributaries.
Flooding has resulted in trillions of naira in losses to farms, properties, and livelihoods in recent years. In response, the NFIP promotes the development of standalone flood insurance policies that provide comprehensive protection, support disaster recovery, and encourage improved risk management.
The national framework guiding this initiative focuses on protecting vulnerable populations, enabling rapid post-flood recovery, and strengthening national resilience. It includes models for financing, risk pooling, regulatory coordination, and localized delivery mechanisms to ensure broad and inclusive coverage across Nigeria.
