Small businesses in Nigeria will soon be able to use insurance premiums as loan collateral.
The Bank of Industry says it is working with ten insurance companies to achieve this.
The BOI made this known at a national insurance conference, a forum aimed at strengthening and deepening insurance penetration in Nigeria.
The BOI says this is to tackle challenges many small enterprises face in providing collateral for its loans.
They ten inusrance companies were chosen on the basis of their financial strength.
The BOI believes this will allow more small businesses access to capital and boost inclusion in the insurance industry.
The National Insurance Commission also pledged commitment to ensuring the initiatives’ success.
The commission says it will release provisional guidelines for effective administration of the initiative.
The regulator is also hopeful that the insurance sector will someday contribute to the funds the bank of industry lends to businesses.
Source: TVC News