Inclusive insurance and risk financing in Nigeria. Snapshot and way forward 2023

Inclusive insurance and risk financing in Nigeria. Snapshot and way forward 2023

September 13, 2023

This report presents the main findings of UNDP’s inclusive insurance and risk finance country diagnostic for Nigeria. It sets out key risks, the current inclusive insurance and disaster risk finance landscape, and recommendations to advance inclusive insurance, risk finance and development.

Nigeria’s main risks include floods, landslides and drought. Microinsurance regulations have been established, along with supporting initiatives including regulatory sandboxes, but inclusive insurance growth has been slow. No formal disaster risk finance tools or programmes have been established and disaster recovery is funded from government budgets.

Recommendations include developing the regulatory framework for insurance; building capacity on disaster risk financing; and developing a disaster risk financing strategy, alongside appropriate risk financing instruments.