Business
NIA Hails Proposal To Insure National Assets
The Chairman, Nigeria Insurers Association (NIA), Mr Eddie Efekoha, has commended the Federal Government over its plan to insure national assets.
Efekoha told newsmen in Lagos last Monday that the measure shows that the Federal Government recognises the role of the industry in the economic development of the nation.
The Minister of Finance, Mrs Kemi Adeosun, had at the 2017 National Insurance Conference (NIC) held in Abuja recently said the Federal Government would insure all its assets to attract foreign investors.
Efokoha urged the Federal Government to play its part by redeeming the promise and paying the N8.4 billion premium backlogs.
He said that the payment of the N8.4 billion premium backlogs would change the wrong perception Nigerians had about insurance.
“Moreover, the fund can provide finance for our long term economic growth for the country’s recovery.’’ he said
Efokoha explained that the industry was making progress as its Gross Premium Written (GPW) had hit N350 billion in 2015.
He, however, said the industry could record better performance if the government fulfilled its promise.
Efokoha said the introduction of insurance products in growing mortgage and housing sector would spur the industry to record geometrical progress.
“NIA efficiently played its part at mitigating the impact of recession on Nigerians with insurance policies through prompt payments of claims.
“NIA also ensured that the insurance market was expanded beyond the upper class and formally employed market.
“The industry has reached out to the middle and lower income classes and the distribution channels became more innovative, considering product features, cost, proximity and other relevant factors.’’ he said
He commended the National Insurance Commission (NAICOM) for its efforts at repositioning the industry, adding that stronger ties with service providers would promote the industry.
“Technology is taking over the world, payment system is changing with trends, we practitioners have talked so much about deepening insurance penetration.
“Insurance penetration cannot be deepened without employing technology to fast track insurance deliveries,’’ Efokoha said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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