The 3rd AviaCargo Chinet Conference in 2023 brought to light a crucial solution that could propel the sector forward: insurance.
The conference, attended by industry leaders, experts, and government officials, spotlighted how insurance can play a pivotal role in enhancing and securing the export supply chain in Nigeria.
The export supply chain, a complex network encompassing various stakeholders, has been plagued by multifaceted challenges, ranging from insecurity to financial setbacks. These issues have often disrupted the smooth flow of products and hindered the growth of the industry. During the conference, experts emphasized that while the government has a responsibility to address societal challenges like insecurity, insurance can step in to safeguard against unforeseen setbacks that could impede the continuity of the export value chain.
Mr. Idowu Jimoh, a distinguished speaker and insurance industry veteran, articulated how insurance could serve as a catalyst for change. “Insurance is more than just a safety net; it’s a tool that offers indemnity against losses, ultimately restoring exporters to their pre-loss position,” Mr. Idowu Jimoh remarked. He emphasized that by paying a premium, exporters could secure coverage against transit risks, a major concern that often hampers exports.
In the realm of exports, ensuring the safety of consignments during transit is of paramount importance. The various modes of transit, including road, sea, and air, each come with their own unique challenges. To address these, marine cargo insurance emerged as a critical shield against potential losses. This insurance form protects consignments from the point of origin to the destination, covering a range of perils including damages during loading and unloading, disruptions caused by war or civil unrest, fires, stranded cargo, weather events, and even theft. With marine cargo insurance, exporters gain the confidence to navigate these challenges, knowing they are financially protected.
The presentation concluded with a consensus that insurance is a game-changer for Nigerian exports, offering a safety net that can mitigate risks and foster the seamless flow of products across the value chain. As Nigeria strives to expand its presence in the global export market, embracing insurance emerges as a strategic move that not only safeguards against uncertainties but also promotes a more resilient and vibrant export sector. The insights from the conference are expected to resonate within the industry, paving the way for a new era of secure and prosperous exports in Nigeria.
