Terrorism undermines Nigeria’s GDP by $437m — Lloyds.

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LLOYD’s, world leading insurer, has warned that Nigeria could lose $437 million, about N157.32 billion, of its Gross Domestic Product, GDP, annually   to terrorism, to rank third in the world on forecast GDP loss. Lloyd’s in its 2018 City Risk Index, also stated that some of the most underinsured countries in the world are in Africa and the Middle East. 

According to the report, Saudi Arabia has an insurance gap (the amount between an expected loss and what is covered by insurance) of $5 billion; Egypt has a shortfall of $3.2 billion and Nigeria, $2.6 billion. 

The report noted that Lagos State ranks fifth in the Middle East and Africa region in terms of potential loss to GDP. “Lagos, the largest city in oil-rich Nigeria, faces geopolitical and security threats. Lagos is a coastal city and will most likely be affected adversely by sea level rise caused by climate change. For example, flooding in 2017 caused disruption and economic loss in the Lekki and Victoria Island areas of the city. Rising water levels which could also assist the spread of disease and human pandemic is the fourth-costliest risk, about $265 million, facing the city.”

By Favour Nnabugwu.

Full story at The Vanguard.