The Nigerian insurance industry one year after the EndSARS protest that engulfed the country in 2020 paid out over N9 billion in claims, exposing the risks profile of businesses without any form of protection.
While individual and businesses that suffered losses have returned back to business after being compensated by their insurance companies, checks show that some of those without some form of protection have closed down or are bankrupt.
Experts at Allianz Nigeria, announcing the Company’s keen interest in Micro, small and medium enterprises (MSMEs), said are usually faced with financial challenges which constantly affect their operations, leading to their closure.
According to them, in the wake of the one year anniversary of the #EndSars protests, it is important to re-emphasize the importance of insurance to the MSME industry and the Nigerian economy at large.
“In its aftermath, statistics released revealed a loss of confidence in the economy by foreign investors as franchises such as Shoprite/SPAR were badly affected. This resulted in job losses, further worsening the unemployment crisis in the country.
Banks who gave out loans were badly affected, as loans to affected businesses had to be written off. Not only did several states groan under the financial strain of rebuilding damaged public assets, but a good number of MSME’s without insurance are also yet to return, one year afterwards, the insurer said.
Read also: EndSARS: Beyond protests and govt’s intolerance
In Allianz Nigeria, we have taken a keen interest in this sector, paying claims promptly and consistently leveraging opportunities in this space to create lasting risk management solutions that would help these businesses properly manage risks and remain in business rather than go bankrupt when the unexpected happens, the Company said
“Our vision is to help entrepreneurs and small to medium enterprises grow their businesses inspiring them to create the next generation of global brands. We support SME’s by providing periodic risk analyses of our operating environment. This is highlighted in the Allianz Risk Barometer results which is published yearly. We provide industry-specific news, trends, insights and data that helps the business make critical decisions based on the realities of their current business environment. We analyze the most pressing issues and outline how entrepreneurs and businesses can do the right thing to avoid such risks and losses.”
We also collaborate with like-minded individuals to give a complete suite of support for businesses to thrive, it stated.
According to them, Small businesses contribute immensely to the economic growth of any country while creating employment opportunities and building the financial strength of the economy. In Africa, though the interest is still very low, South Africa, Kenya and Egypt are front runners on the continent.
A recent survey reveals that MSMEs contributed about 48 percent to GDP in the last five years with over 50 percent employment and 90 percent contribution in the manufacturing industry respectively.
Though, Nigeria is largely dependent on importation, there is still huge potential when it comes to business value chain in various sectors and sub-sectors of the economy which has given rise to the number of MSMEs in Nigeria today.
The report shows that there are over 42million MSMEs and the number continues to increase as young Nigerians embrace entrepreneurship. As interesting as this might sound, the insurance patronage experienced from the MSMEs in Nigeria is next to nothing, offering no buffer in uncertain times.
