NICON Insurance, micro finance banks sign MoU to boost Nigeria’s business frontiers
NICON Insurance has signed a memorandum of Understanding with the National Association of Micro Finance Banks (NAMFB) in order to stem the harsh effects of economic recession on small scale businesses in the country.
The pact, sealed by NICON with the umbrella micro finance body, composed of 978 members, is said to be targeted at providing the needed insurance cover to stave off risks for the nation’s micro finance banks.
The NICON Insurance Managing Director and Chief Executive Officer, Bayode Samuel, and National President of NAMFB, Segun Valentine Whensu, disclosed the development at a joint press briefing in Abuja.
Indeed, NICON’s MD described the pact as timely and strategic, saying it remains the first of its kind in this part of the world.
He said he was not in doubt that it would help to reduce the risk associated with small business in particular.
He said the negotiations between NICON and the micro finance body on the pact started over a year ago, adding that, “We are happy that we have been made the major insurance company to underwrite their risks. It is a joyous occasion for us at NICON to add value to this important sector in the Nigerian economy.”
He explained that the impact of the insurance cover for micro finance banks will help to boost production and create employment across the country.
He said, “We are announcing to the world that a momentous occasion has taken place. We think it is an important sector of the economy that we can’t ignore; we are privileged to come in and enhance their values.”
Specifically, the National President of the micro finance banks said the partnership will help the over 37 million medium and small business in the country as they constitute the engine room of growth for the country’s ailing economy.
“The 978 institutions, working with NICON, would afford them more national presence, huge capital base, and continued Federal Government’s involvement in the sector,” he said.
He emphasized that de-risking sub-sector through insurance scheme would also free huge fund for investment.
He disclosed that the MoU, signed in Akwa Ibom State, is targeted at insuring credit risk in order to facilitate business activities, adding that the presence of NICON all over the country will, indeed, be an added advantage for greater success of the scheme.