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Introduction

Country: Nigeria

Classification: National Consultant

Currency: Naira

Description of the Assignment: National Consultant for the Development of National Disaster Risk Finance Strategy

DURATION OF THE WORK: 15 working days.

Location: Homebased (Nigeria), with occasional travel to Abuja.

Background

The United Nations Development Programme (UNDP) is a global organization with 17,000 staff working in

approximately 170 offices globally towards supporting governments in developing strong policies, institutions and partnerships to achieve the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals.

In order to streamline its financial and investment engagement, UNDP launched the Sustainable Finance Hub, a finance and innovation platform, that draws on a critical mass of UNDP expertise, initiatives, and partnerships to support the mobilization and leveraging of resources for the SDGs and lead the implementation of the new UNDP private sector strategy and other initiatives. The Hub is an integral part of both the Bureau for Policy and Programme Support (BPPS) and the Bureau of External Relations and Advocacy (BERA), as well as part of the GPN. The Hub serves as a connector, broker, and global coordinator among internal and external actors, and curates and manages UNDP’s catalogue of service offers on SDG financing to governments, investors, and companies, via the COs, to significantly enhance the scale.

In 2021, UNDP launched the Insurance and Risk Finance Facility (IRFF), a dedicated resource for UNDP Country Offices and country partners worldwide, within the Sustainable Finance Hub. The IRFF is a flagship initiative which focuses on inclusive insurance, sovereign risk financing, insurance investments, natural capital and other areas where insurance and risk transfer solutions can contribute significantly to the achievement and delivery of the Sustainable Development Goals (SDGs). The IRFF aims to foster financial resilience and underpin sustainable development by harnessing the power of insurance and risk financing. It focuses on vulnerable populations, communities, and fragile ecosystems, particularly developing innovative insurance solutions and services. By aligning with the National and State Emergency Management Authorities amongst others, IRFF offers a variety of resources, including policy advisory, tools, and networking opportunities that increase resilience against diverse societal and environmental shocks. The overarching goal is to forge a robust financial resilience against escalating climate risks through inclusive insurance, risk financing mechanisms, governance, development, advocacy, research, and evidence-based practices. IRFF is currently working in more than 34 countries and will move to 50 countries by 2025. All IRFF’s work is aligned to the goals of InsuResilience Vision 2025 which aims to cover 500 million people with insurance solutions in developing countries in the next three years.

UNDP Nigeria, through the IRFF are working with both the government and the private sector to create the enabling environment for Innovative insurance solutions that address climate change, economic growth, resilience, vulnerability and poverty reduction. This initiative aims to stimulate the creation and delivery of innovative risk financing and insurance products, tools, and services, while simultaneously driving long-term insurance and risk financing market transformation in Nigeria. Moreover, this initiative adopts a research and evidence-based approach to bring about legislative and regulatory changes in the insurance sector, which enables the development of new products, tools, and services in partnership. This plan of action is in harmony with the Nigeria’s Diagnostic study on Inclusive Insurance and Risk Financing 2023’s findings and recommendations, forms the basis for a three-year work plan funded by the German government.

In recent years, Nigeria has witnessed an escalation in the intensity and frequency of natural disasters, underscoring the urgent need for a structured approach to disaster risk financing and management. The devastating floods of 2012 and 2022 affected millions of people, leading to massive displacements and economic losses. Similarly, the persistent droughts in the northern regions have crippled agricultural activities, displacing communities and pushing them to the brink of famine. Epidemic outbreaks, such as the Ebola virus in 2014, COVID-19 between 2020 – 2021 and the recurrent Lassa fever and cholera, have strained the country’s public health infrastructure, highlighting significant gaps in preparedness and response mechanisms. The impact of these disasters is compounded by Nigeria’s socio-economic challenges, including high poverty rates, inadequate infrastructure, and limited access to healthcare and education. These factors collectively impede the country’s development efforts and exacerbate the vulnerability of its population to natural hazards.

The rationale for developing a Disaster Risk Finance Strategy for Nigeria is grounded in the need to minimize the economic impact of disasters on individuals, businesses, and the government. The recurrent natural disasters not only disrupt daily life but also cause significant economic losses, diverting funds from essential development projects to emergency response and recovery efforts. Enhancing national and local capacities to effectively manage disaster risks and respond promptly is crucial for safeguarding lives and property. By fostering resilience among communities through risk reduction measures and financial protection mechanisms, the strategy aims to create a robust framework for sustainable development.

Given the lack of adequate financing mechanism for managing disaster risks and the increasing frequency and severity of disaster events, there is an urgent need for a comprehensive Disaster Risk Finance Strategy to enhance Nigeria’s financial resilience and stability against disasters and crisis.

To fill this gap, UNDP is seeking to recruit a consultant to assist in drafting a Nigeria National Disaster Risk Finance Strategy (DRF).

Work Assignment:

Guided by the UNDP Country Office’s Team Lead, Environment and Climate Sector, the consultant will work closely with the National Disaster Management Agency (NAEMA). And other relevant agencies.

The consultant’s tasks and obligations include working with the International Consultant to do the following:

1. Perform an exhaustive analysis of Nigeria’s existing legislative systems, regulations, strategies, policies, and disaster risk financing and insurance plans, including:

a. Undertake a comprehensive review of disaster-related expenditure, covering the fiscal economy, investments, tax structure, and budget utilisation.

b. Assess financial needs to confront the current and anticipated disaster risks.

c. Evaluate the historical and current landscape of disaster risk financing in Nigeria through:

 Scrutiny of previous and current disaster risks finance management in Nigeria.

 Coordinating face-to-face interviews with predetermined number of individuals, representatives from relevant Ministries Departments and Agencies (MDAs) in Nigeria, and ensure gender balance with a minimum of 30% female respondent participation, while incorporating views from a diverse group of experts from MDA representatives, local government officials and insurance companies.

d. Investigate and draw lessons from the most effective disaster risk financing strategies implemented in global and regional contexts, that share similar contexts with Nigeria.

2. Generate Nigeria’s National Disaster Risk Finance Strategy including roadmap and implementation plan involving the following:

a. A comprehensive assessment report showing Nigeria’s National Disaster Risk Finance Strategy Landscape.

b. A strategic plan for Nigeria National Disaster Risk Finance Strategy, incorporating:

i. The rationale behind the strategy

ii. Defined goals and performance metrics

iii. Priority areas of the strategy

iv. Legal and institutional works that support the strategy

v. A review of historical data and current circumstances.

vi. Case studies from local, regional and global experiences.

vii. Engagement of community members, the private sector, and NGOs in the strategy’s formulation and implementation.

viii. A timeline for strategy implementation.

ix. A three to Five-year roadmap and a detailed implementation plan.

x. Identify a priority area for initial implementation.

3. Develop a methodology/guideline for the Disaster Risk Financing Strategy to be used in its development – such as the scope, priorities, and structure of the DRF Strategy, Fiscal impacts of disasters, Legal and regulatory framework informing the DRF strategy, Institutional structure informing the DRF strategy, analysis of existing DRF instruments and related opportunity cost of financial instruments, etc.

4. Establish and manage a comprehensive stakeholder engagement process to ensure the strategy is validated and continually revised based on feedback from all relevant parties, including local communities, government agencies, NGOs, and private sector partners, especially National and State Disaster Management Agencies, relevant MDAs, Insurance and risk finance players.

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