Operators of the insurance industry have joined other trade groups in appealing to government to tackle the problems of infrastructure decay in the economy in order to reduce the high cost of doing business in the country and reducing claims payment in the industry.
According to risk managers, insurance business being a service industry thrives when other sectors are growing but poor infrastructural facilities such as bad road, epileptic power supply impact negatively on all businesses and quality of life, thereby increasing the quantum of losses to the industry in terms of rise in claims payment.
The Managing Director and chief executive, STACO Insurance Plc, Dr. Sakiru Oyefeso, lamented the league of industrial firms that have closed down due o the unfriendly business environment in the country including those in the production of textiles, factories producing tyres, batteries, automobiles, aluminum papers among others,
He said that these are corporate organisations who actually insure their assets, production lines, employees, they import machineries and raw materials, they take up insurances for their employees and pay the premiums. It is unfortunate that the nation is losing billions of naira yearly if you want to quantify in monetary terms.
He said “we want to appeal to the government to put up friendly industrial policy that will revive the industrial base of this country because apart from generating employment any country without an industrial base is in for trouble, the government should address this issue urgently in the interest of the economy.
Also a chieftain of the industry who pleaded anonymity said “one of the main issues that we are facing in this country is infrastructure, it is key to growing any economy. You look specifically at the power sector it is the engine for the growth of the economy but the power sector has been epileptic for over 30 years in Nigeria. The government is unable to generate power even through they have spent a colossal amount running into trillions”.
Besides, there is the problem of bad roads. Although the present government has just come in, this country cannot move forward without power, good road and environment that will attract investors both local and foreign. The challenges to business in Nigeria are quite enormous. Government should give serious consideration to industrial base in this country to increase employment and insecurity.