Nigeria can end its growing job loss and dwindling revenue base if the Federal Government harnesses the insurance sector potential for sustainable growth, a management consultant, Mr. Ekerete Gam-Ikon, has said.
According to Gam-Ikon, a specialist in Strategy and Insurance, the worsening economic indices in Nigeria are indication of urgent need to rejig the country’s economic policies, especially by turning to insurance as a viable alternative.
He, however, lamented that the sector has not been accorded the needed attention in Nigeria, despite its enormous potential for economic growth.
“The state of the insurance industry in Nigeria may seem presently weak both financially and technically but its strength lies in the realization of its potential progressively. There is a time that is right for one to stand and the others support and encourage for the good of all. I do strongly believe that the time has come for the insurance sub-sector to help the economy grow, and this must be done from the front with the co-operation of other sectors,” he said.
Explaining how the insurance sector can tackle job loss and increase the country’s economic base, he said: “Job losses, as we have experienced according to national statistics are not peculiar to us, however when job losers do not have a fall-back position or job creators are not protected, commonly through insurance, the greater economy suffers stagnation.
“We should not be surprised that our employment indices are not changing because whilst the mere announcement of infrastructure projects create jobs, the failure to follow through often causes irreparable losses that reflect on our human development index.”
He maintained that the inconsistencies of economic growth under the Buhari-led administration were caused by poor adoption of insurance strategies.
He said: “The commitment of the Buhari-led administration to infrastructure projects across the country is commendable when viewed from the efforts made to enable diversification of the revenue base. However, the situation where growth is achieved in two quarters and lost in the next quarter can be attributed to the poor adoption of insurance in the activities of both the Federal Government and its economic growth partners.
“Consider the power sector and the efforts being made to get stakeholders to take responsibility and commit to the overall objective of increasing access to electricity, missed deadlines and withdrawal of commitments would have been better managed by insurance contracts. There are diverse insurance coverages to proactively curtail the behaviour and conduct of parties which Nigeria needs to adopt, like other advanced economies, in its dealings.”