‘How MFBs can boost micro-insurance’

The Central Bank of Nigeria (CBN) and financial sector experts have called for collaborative efforts among microfinance banks (MFBs) to promote the expansion of micro-insurance as a tool for deepening financial inclusion.

Making this call in Lagos at the 6th annual symposium of the Nigerian Microfinance Platform (NMP) organised by the Microfinance Learning and Development Centre (MLDC), they held that microfinance banks are instrumental to the expansion of micro-insurance services among the populace.

Deputy Governor, Financial Sector Surveillance, CBN, Mrs Aisha Ahmad, said: “I consider it vital for us, through collaborative efforts, to look deeper into this shadowed aspect of financial inclusion, exchange ideas with our counterparts from other countries, build regulator/ operator capacity and tackle issues within the sector to enhance the provision and availability of affordable financial services in Nigeria.”

Also, Group Chief Executive Officer, Letshego Holdings, the parent company of Letshego MFB, Andrew Fening Okai, said: “Microfinance participants should commit to collaborate on building microinsurance as a product of necessity while paying attention to simple but efficient distribution channels supported by easy claims resolutions.”

Managing Director/ Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Hassan Bello advised the participants on factors MFBs need to consider in the provision of microinsurance services.

President Chartered Institute of Bankers of Nigeria (CIBN), Mr Bayo Olugbemi, said: “The onslaught of the COVID-19 pandemic and the social unrest, which climaxed the EndSARS protest corroborate the need for insurance no matter the size of a given business.