The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has signed a memorandum of understanding (MoU) with NICON Insurance Limited.
SMEDAN and NICON, in the agreement, determined to reinforce the agenda of diversification of the economy through the empowerment of the informal sector.
They said it represents their steps towards ensuring the success of Micro, Small and Medium Enterprises (MSMEs) in the country.
SMEDAN, in the agreement, promised to provide insurance services for its more than 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 economy, signed the epochal document with NICON Insurance Ltd in Abuja .
At the ceremony, the Director-General of SMEDAN, Dr. Dikko Umaru Radda, described the initiative as a sure means of ensuring the sustainability of MSMEs in Nigeria by providing adequate insurance cover for them from various types of risks.
Radda called on both organisations to ensure they implement the MoU to the letter, adding that it will be reviewed periodically in order to make it remain on track.
Managing Director, NICON Insurance Limited, Mr. Bayode Samuel acknowledged SMEDAN’s capacity to manage the huge pool of members who make up a significant proportion of Nigeria’s Gross Domestic Product (GDP).
According to him, this makes NICON Insurance the ideal partner to provide insurance services for this important segment of the economy.
He pledged that NICON Insurance will provide generic insurance cover as well as tailor made products to meet the peculiar needs of MSMEs.
Samuel noted that NICON Insurance with its network of 40 branches nationwide and experience as sole underwriter for all government assets for 35 years, will ensure that MSMEs receive cutting edge insurance services to enhance their growth and sustenance.