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The Abuja Chamber of Commerce and Industry (ACCI), through its National Policy Advocacy Centre (NPAC), has partnered with the National Insurance Commission (NAICOM) and key industry stakeholders to promote insurance adoption among small and medium enterprises (SMEs) in Nigeria.
This collaboration was highlighted during a high-level webinar held on Tuesday, themed ‘Can SMEs Still Afford the Risk of Not Insuring Their Businesses?’
Emphasizing the Importance of Insurance for SMEs
In his opening remarks, ACCI Director-General, Mr. Agabaidu Jideani, underscored the vulnerability of SMEs to various risks, including financial crises and natural disasters, which could threaten their survival.
“Regardless of their size, businesses are exposed to a wide range of risks that can severely disrupt operations or even lead to their collapse. Insurance is a fundamental risk management strategy that SMEs must embrace to ensure sustainability,” Jideani stated.
He noted that many SMEs in Nigeria overlook insurance, leaving them susceptible to economic shocks. The webinar aimed to address this gap by educating SMEs on the strategic benefits of insurance and offering guidance on selecting suitable insurance products.
NAICOM Advocates for Insurance as a Business Safeguard
Speaking at the event, NAICOM Chief Executive Officer, Mr. Olusegun Omosehin, represented by Aisha Bashir, Head of Microinsurance, emphasized the role of insurance in ensuring business continuity for SMEs.
“SMEs form the backbone of Nigeria’s economy. Despite their economic significance, they face numerous challenges that could jeopardize their long-term sustainability, including fire outbreaks, theft, health emergencies, and even the loss of key personnel,” she explained.
She further highlighted that insurance provides SMEs with a crucial safety net, protecting assets and mitigating financial losses. “To secure their operations and sustain growth, SMEs must integrate insurance into their business strategies,” she added.
Bashir also reaffirmed NAICOM’s commitment to enhancing insurance accessibility for SMEs, citing regulatory initiatives such as microinsurance and takaful guidelines designed to offer affordable coverage for small businesses.
Experts Advocate for SME-Specific Insurance Solutions
Francis Nzeh, Director of Gulf Insurance Brokers Limited, stressed the importance of leveraging innovative insurance solutions tailored to SMEs.
“Insurance serves as a financial buffer against various risks, including cyber threats, supply chain disruptions, and unforeseen liabilities. It provides financial security, debt protection, tax benefits, and asset protection,” Nzeh explained.
He encouraged SMEs to explore a wide range of insurance policies, including health, automobile, cyber, and public liability insurance, to protect their businesses from uncertainties.
Addressing the Insurance Gap in the SME Sector
The webinar highlighted the significant role of SMEs in Nigeria’s economy, contributing approximately 48% of the national GDP over the past five years. However, many SMEs struggle with insurance adoption due to high premiums, inadequate awareness, and financial constraints.
Sunday Ugwu, the webinar’s anchor, provided insights into the scale of the SME sector in Nigeria. “With over 41.5 million SMEs in Nigeria, this sector remains a critical economic driver. However, limited access to insurance, weak regulatory frameworks, and insufficient knowledge pose challenges that must be addressed,” he noted.
Strengthening Regulatory Frameworks and Awareness Campaigns
Chidinma Gbemileke, Head of Training Academy at AXA Mansard Insurance, called for stronger regulatory enforcement to ensure fair practices in the insurance industry. She emphasized the need for digital sensitization campaigns and community outreach programs to educate SMEs on the benefits of insurance.
Similarly, Emmanuel Edorotu of Winock Insurance Brokers Ltd. urged SMEs to shift their perception of insurance from an optional expense to an essential business investment. He stressed the importance of customized insurance solutions that cater to industry-specific risks.
Collaboration for Enhanced SME Protection
Dr. Chidiebere Onwumere, Executive Director of ACCI-NPAC and organizer of the webinar, expressed gratitude to ACCI leadership for their continuous support. He commended the speakers for their insightful discussions on business risk management and insurance adoption.
Onwumere further advocated for stronger collaboration among industry stakeholders to drive awareness and encourage more SMEs to integrate insurance into their business models.
The event concluded with a commitment from ACCI to relay key recommendations from the webinar to policymakers, ensuring that SMEs receive the necessary support to thrive in an increasingly unpredictable business environment.
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