By Modupe Gbadeyanka
A memorandum of understanding (MoU) to provide insurance cover for Small and Medium-sized Enterprises (SMEs) in the country has been signed.
The deal was finalised between the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and NICON Insurance Limited at a ceremony held recently in Abuja.
Under the agreement, SMEDAN will provide insurance services for over its 37 million members across Nigeria, while NICON will provide them with generic insurance cover.
This, it was explained, is to protect entrepreneurs from the resultant effects of unfavourable and unpredictable economic environment.
It was gathered that SMEDAN, an agency of the Federal Government, took this initiative as part of efforts to reinforce the agenda of diversification of the economy through the empowerment of the informal sector.
Director-General of SMEDAN, Dr Dikko Umaru Radda, speaking at the signing ceremony, 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.
On his part, the Managing Director of NICON, Mr Bayode Samuel, applauded SMEDAN for the move and promised that his company will not fail.
SMEDAN was established by FG to promote the development of the MSME sector of the Nigerian economy.