For ignoring insurance, traders lose big to fire outbreaks

The year 2024 was eventful for markets across the country, with over 26 cases of fire incidents across the country.

Investigations show that most of the affected markets were without insurance, resulting in millions of naira losses for the traders.

In Lagos, popular plank markets at Pipeline Street in Ikotun Area of Lagos State, a fire at 14-storey Mandilas Building, Broad Street on Lagos Island, fire at 48 Breadfruit Street, Apongbon, Lagos Island; as well as14 buildings in the Lagos Island market, around the Balogun and Dosunmu axis were affected.

Annual Data Analysis released by the Lagos State Emergency Management Agency, LASEMA shows that the agency attended to 1,675 incidents in 2024.

Femi Oke-Osanyintolu, permanent secretary of the agency in the report shows that 31 of the incidents are fire outbreaks.

In a bid to educate traders and the public on the importance of insurance, the National Insurance Commission (NAICOM) and the United Nations Development Programme (UNDP) took their Insurance Literacy and Consumer Protection Campaign to Wuse Market in Abuja recently.

The campaign, tagged “Insurance Literacy And Consumer Protection Campaign: A UNDP (Nigeria) Project 2025,” aims to enhance financial resilience and promote inclusive insurance as a vital tool for reducing poverty and building financial inclusion.

While NAICOM alongside the UNDP took the campaign to Wuse Market, Abuja, the Nigerian Insurers Association too theirs to Balogun Business Association Square (BBA), and ASPAMDA Market on Lagos International Trade Fair, Badagry Road, in Lagos.

Key discussion points include Fire and Special Perils Insurance, which is meant to compensate traders for losses or damages caused by fire, storms, floods, and impact by vehicles or animals.

The campaign also emphasised Goods in Transit Insurance, which provides immediate financial compensation for losses or damages during transportation.

There was also emphasis on the benefits of Accident Insurance, which offers financial compensation for injuries or deaths resulting from accidents.

“Life Insurance is also a vital tool for leaving inheritance for dependents in the event of untimely death.

Olusegun Ayo Omosehin, commissioner for Insurance, represented by Kenneth Aroh, emphasized NAICOM’s core mandate, which is to protect policyholders and regulate the insurance industry.

Stakeholders, including the Nigerian Council of Registered Insurance Brokers (NCRIB) and the Nigerian Insurers Association (NIA), participated actively in the campaign, providing guidance on purchasing genuine insurance policies and verifying their authenticity.

Toyin Akinmoya, representative of the NIA at Wuse Market in Abuja, explained to the participants how to verify a genuine insurance policy by visiting www.niip.ng or www.askiid.ng.

Soji Oni, controller technical at NIA at the Lagos campaign explained risk management mechanisms for market risk improvement.

Oni stated that businesses are faced with different risks or unforeseen circumstances, and the best risk treatment is insurance.

The NIA scribe noted that insurance is a key risk management tool for businesses, including stock-in-trade.

” For traders, we believe the right insurance product back up with risk improvement recommendations will be the cornerstone of their businesses success, providing them with the necessary security, peace of mind and confidence to navigate unexpected occurrence, “Oni said.

The UNDP aims to enhance financial resilience and promote inclusive insurance as a vital tool for reducing poverty and building financial inclusion through its Insurance and Risk Finance Facility (IRFF).