The Abuja Chamber of Commerce and Industry (ACCI) recently took a proactive step towards bolstering the resilience of Small and Medium Entrepreneurs (SMEs) in Nigeria’s capital by hosting an insightful webinar. The session, held on Tuesday, focused on educating SMEs on the critical significance of insurance as a fundamental strategy for strengthening business sustainability and navigating unforeseen challenges.
Mr. Agabaidu Jideani, the Director-General of ACCI, underscored the core objective of the webinar, stating that it was designed to “raise awareness among entrepreneurs about the importance of insuring their businesses.” Recognizing a potential knowledge gap within the SME sector regarding risk management, ACCI’s National Policy Advocacy Centre (NPAC) spearheaded the initiative.
The webinar aimed to bridge this gap by highlighting the strategic advantages of insurance, dispelling common misconceptions surrounding it, and providing practical guidance on how SMEs can select the most appropriate insurance products to safeguard their operations and ensure long-term resilience.
“By giving SMEs a deeper understanding of insurance, we hope to strengthen the resilience and sustainability of Nigerian businesses,” affirmed Mr. Jideani. He astutely pointed out that businesses of all sizes are inherently exposed to a myriad of risks, ranging from natural disasters and financial downturns to other unpredictable challenges, all of which can pose a significant threat to their very survival.
Mr. Jideani expressed concern over the current landscape, noting that “Unfortunately, many small and medium-sized businesses in Nigeria fail to consider insurance as a fundamental risk management strategy, leaving them vulnerable to economic shocks.” This lack of insurance coverage can leave SMEs particularly susceptible to potentially devastating financial losses.
Looking ahead, Mr. Jideani assured webinar participants that the valuable insights gleaned from the session would be diligently conveyed to relevant authorities. This proactive approach aims to inform the formulation of policies specifically designed to foster a more secure and conducive environment for business growth and development within the SME sector.
The importance of insurance for MSMEs (Micro, Small, and Medium Entrepreneurs) was further emphasized by Mr. Olusegun Omosehin, the Chief Executive Officer of the National Insurance Commission (NAICOM). Represented at the webinar by Hajia Aisha Bashir, Head of Microinsurance at NAICOM, Mr. Omosehin addressed the specific obstacles often encountered by these crucial businesses.
Hajia Bashir echoed Mr. Omosehin’s sentiments, stressing that “Insurance is essential for business stability, continuity, and growth.” She elaborated on the tangible benefits of a robust insurance portfolio, explaining that it significantly improves an MSME’s creditworthiness. This enhanced financial standing, in turn, makes it easier for SMEs to access vital loans necessary for expansion and future investments.
Furthermore, Hajia Bashir highlighted NAICOM’s commitment to making insurance more accessible and affordable for MSMEs across Nigeria. The commission is actively introducing insurance literacy programs aimed at empowering business owners with the knowledge needed to make informed decisions about their insurance coverage.
In a clear call to action, Mr. Omosehin, through Hajia Bashir, urged SMEs to fundamentally shift their perception of insurance. He encouraged them to view insurance not as a mere expense but rather as a strategic and indispensable investment in the long-term security and prosperity of their businesses.
The message was clear: with the right insurance coverage in place, Abuja’s SMEs will not only be better equipped to weather potential storms but will also be positioned to thrive and contribute more significantly to the local and national economy.
Leave a Reply