INSURANCE operators have called on the government to take concrete steps to revive the manufacturing sector, saying that the collapse of the textile industry in Nigeria is having huge negative impact on operations of insurance companies.
Managing Director, Royal Exchange General Insurance Company, Mr. Olutayo Borokini, who made this assertion, said that if the manufacturing sector is not doing well, then the insurance sector will suffer.
Negative effect on operations
Borokini said “Definitely, the collapse of textile industry has a negative effect on our operations because one of the things that help to engineer insurance is actually the manufacturing sector.
If the manufacturing sector is not doing well, it affects the entirety of the insurance industry.”
He said that the problems being encountered with the textile industry are because of the fact that Nigeria has been a dumping ground for materials coming from China and Hong-Kong which led to the demise of these industries, adding “of course, insurances that are coming from them have also disappeared.”
He said that such development has really affected insurance companies in general.
“There are also other industries that have also gone down. Take for example, the tyre industry; Dunlop for example sold off some of their properties because of this same fact that Nigeria is a dumping ground for tyres coming from China.
So that led to the death of that industry. It is a problem that is tampering with our economy. Of course, insurance is also affected when the economy goes down. We urge government to revive these industries, so that insurance can start to grow in those industries,” Borokini said.