The Small and Medium Enterprises Development Agency of Nigeria has signed a Memorandum of Understanding with NICON Insurance Limited to boost the Federal Government’s diversification agenda through the empowerment of the informal sector.
In a statement on Wednesday, the company said the decision was aimed at boosting the growth of the SMEs in the country.
According to the firm, SMEDAN aims to provide insurance cover for its over 37 million members across Nigeria in order to protect them from the vagaries of the economic environment.
“The agency, which was established by the Federal Government to promote the development of the MSME sector of the nation’s economy, signed the epochal document with NICON Insurance in Abuja recently,” it stated.
The Director-General, SMEDAN, Dr. Dikko Radda, was quoted as commending the initiative, describing it as a means of ensuring the sustainability of the MSMEs in the country.
While calling on both organisations to ensure the MoU is implemented to the letter, Radda noted that it would be reviewed periodically to keep it on track.
The Managing Director, NICON Insurance, Mr. Bayode Samuel, was quoted to have acknowledged SMEDAN’s capacity to manage the huge pool of its members, who, according to him, make up a significant proportion of the nation’s Gross Domestic Product.
He assured the organisation that NICON Insurance would provide generic insurance cover and tailor-made products to meet the peculiar needs of the MSMEs.
Samuel noted that the company, with its network of 40 branches nationwide and experience as sole underwriter for all government assets for 35 years, will ensure that the MSMEs receive cutting-edge insurance services to enhance their growth and sustenance.