The Abuja Chamber of Commerce and Industry, through its National Policy Advocacy Centre, has partnered with the National Insurance Commission and key industry stakeholders to encourage small and medium enterprises in Nigeria to embrace insurance.

This was revealed on Tuesday during a high-level webinar titled ‘Can SMEs Still Afford the Risk of Not Insuring Their Businesses?’

In his opening remarks, ACCI Director-General Mr. Agabaidu Jideani emphasised the vulnerability of SMEs to risks such as natural disasters and financial crises.

“Businesses, irrespective of their size, are exposed to a myriad of risks, including natural disasters, financial crises, and other unforeseen challenges. Such disruptions can severely impact business operations and, in extreme cases, threaten their very survival,” he said.

Jideani noted that many SMEs in Nigeria fail to consider insurance a fundamental risk management strategy, leaving them highly vulnerable to economic shocks.

“Through this webinar, our objective is to bridge this knowledge gap by enlightening SMEs on the strategic significance of insurance, dispelling common myths, and offering practical guidance on selecting the most suitable insurance products,” he added.

The Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, represented by Aisha Bashir, Head of Microinsurance, highlighted the importance of insurance for business continuity.
“MSMEs are the backbone of any economy, including Nigeria’s. Despite their economic importance, MSMEs confront several obstacles that could jeopardise their long-term viability, including unanticipated hazards such as fires, theft, health emergencies, natural catastrophes, and even the death of key individuals,” she said.

She further stressed that insurance provides a safety net for SMEs, shielding them from risks that could result in loss of assets and income.

“Given these dangers, MSMEs must have systems in place to secure their operations and assets and assure business continuity,” she noted.

Speaking on regulatory efforts to improve access to insurance for SMEs, Bashir stated, “NAICOM is committed to ensuring that insurance becomes accessible, affordable, and understandable for MSMEs across the country.”

She added that the commission has introduced initiatives such as microinsurance and takaful guidelines to provide affordable and inclusive insurance products for small businesses.

Director of Gulf Insurance Brokers Limited, Francis Nzeh, emphasised the need for SMEs to leverage innovative insurance solutions.
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