The African Risk Capacity, a specialized agency of the African Union is asking the Federal Government of Nigeria to take advantage of the regional insurance scheme to reduce the burden of a national disaster risks financing.
African Heads of States and Ministers of Finance in 2012 called for the establishment of a specialised agency that will provide disaster risk insurance coverage for member states.
Four years after its establishment in July 2012, the agency is urging the Nigerian Government to take advantage of its provision to lighten the burden of disaster risk financing.
Although Nigeria had become signatory to this initiative since four years, it has been unable to benefit from the coverage it provides.The Director, Risk and Rehabilitation at the National Emergency Management Agency (NEMA), Kayode Fagbemi, explained the reasons why the government has not benefited from the scheme.
He highlighted the country’s failure to fulfill its financial obligations as a major factor.Both the Director of Policy and Technical Services for the African Risk Capacity, Ehosuehi Iyahen and a representative of the Ministry of Finance emphasized the need for Nigeria to actively take advantage of the scheme.
Nigeria has had a fair share of natural and man-made disasters since 2012, with huge financial burden resting on the shoulders of the government and the individuals affected.
The disaster financing experts argued that such burden can be lightened if the government take advantage of the regional insurance scheme that the African Risk Capacity provides.
Since inception, the African Risk Capacity has provided 26.3 million Dollars as disaster risk insurance coverage to Senegal, Niger and Mauritania.