The Director-General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Dr. Dikko Umaru Radda has called on all start ups, MSME operators and would be entrepreneurs to protect their business by embracing micro insurance policy that will reduce the numerous risk attached to setting up a business from the scratch due to the environment they operate in. Dr. Radda gave this piece of advice when he played host to the visiting Managing Director of Nicon Insurance Plc, Mr. Bayode Samuel in his office.
He told the Nicon insurance team that they came calling at the right time when SMEDAN needs them because MSMEs need micro insurance at this time due to the high risk involved in doing business.
“After our recent management retreat, we discovered lots of issues and challenges relating to MSMEs development. We noticed that 90% of them are in the informal sector, they lack the conditions for assessing funds, basic knowledge to start and run a good business and we came out with a blueprint on how to create a conducive platform for their business to thrive”
According to him, SMEDAN is in the process of migrating MSMEs from the informal to formal sector, and this involves a lot of conditions to be met and micro insurance is very vital in this process.
The Director General also notified his guest that the Corporate Affairs Commission CAC have agreed in principle to reduce filing rates for MSMEs registration, but that SMEDAN would act as referrals to would be SMEs to get registered.
“We are poised to impact on the MSME sector by collaborating with your reputable insurance company which has branches that spans through all corners of the federation, this would enable us work together and we are confident that our relationship would bring about a revolution in the MSME sector.