General News
Place of Information Technology in Insurance
As the world information order grows, it is only expected that the different industrial sectors grow alongside. These days, no meaningful business can be done without the reliance on technology. Gone are the days when manual paper documentation was relied upon to do insurance transaction. These days, any insurance company that is yet to fully computerize its operation, is not fit to be in business. Insurance in Nigeria has had a tale of woes over its almost one decade of existence. Some of the greatest challenges confronting the industry are poor image, lack of public confidence, suspicion and perceived non payment of claims among others. The importance of insurance is felt in every sphere of life. Life involves risk and while it is often unavoidable, you can certainly take steps to minimize its effects. Many individuals opt to buy insurance to protect their needs. Insurance is a contract between an insured and the insurer where the latter agrees to compensate the former against potential future losses upon payment of premiums. Who needs Information Technology (IT) insurance? Information technology services involve the provision of both products and advice and yet the purchase of appropriate insurance is usually the last decision a business will make. Typical IT insurance protects the firms from claims arising out of professional negligence or failure to perform professional duties. IT insurance firms also cover errors and omissions that result in loss of client data, system failure, claims of non-performance or careless overselling of services. Information technology works in diverse ways in insurance. Let us take the Professional Liability Insurance as an example. Here the basic idea behind professional liability insurance is that it provides protection against claims arising from third party loss, that is, settlement is not made to the insured, but to the third party who has suffered the loss. Any act, error or omission that results in a direct financial loss to a third party client may result in allegations of negligence against the company which can result in both financial loss and also damage to reputation and good will. In the event of a claim, some insurers also agree to pay costs of defence, as well as any settlement amounts up to the limit of indemnity taken under the policy. The provision of information technology services includes computer consultancy, database management, hardware networking, web design and development and internet services. Companies providing internet services can also be subject to substantial claims resulting from allegations of copyright and trademark infringement or the effects of computer viruses. Web designers may inadvertently use copyright protected materials while conducting their professional services which may result in substantial fines and penalties.
Under the General Liability section of an IT insurance, policy ensures the company’s physical assets and equipment are covered, in addition to providing cover for any product damage that a third party may suffer as a result of the company’s professional services. The insurer provides protection against fire, theft, flood and accidental damage. General liability insurance does not cover damages incurred as a result of mechanical failure, virus attacks or equipment left behind in public transport or public places. If equipment is stolen, or the damage is beyond economic repair, the insurer may consider providing the insured with replacement equipment. However it is important to note that most Information Technology liability policies are written on a ‘claims made basis’. This means that you must have an IT insurance policy in place at the time a claim is made against you, rather than the time the alleged act, error or omission is committed. Therefore, the policy in place at the time a claim is made against you is the policy that will respond to that claim, rather than a policy in place at the time of the alleged act, error or omission.
Economic and Financial Crimes Commission (EFCC) has arraigned four persons before the Federal High Court in Lagos over an alleged money laundering scheme involving $5.3 million.
The defendants — Bamidele Ayodele Emmanuel, Abdullah Oriyomi, Garuba Fathiat Funmilayo and Gbenro Victor Ademola — were arraigned before Justice F. N. Ogazi of the Federal High Court sitting in Ikoyi on separate two-count charges bordering on money laundering.
According to the anti-graft agency, the alleged offence involved a total of $5,296,691 and contravenes the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022.
One of the charges against Emmanuel alleged that between January 1 and 31, 2025, he retained $826,691 in a Wema Bank account, which he allegedly ought to have known formed part of the proceeds of unlawful activities.
The EFCC alleged that the act was contrary to Section 18 of the Money Laundering (Prevention and Prohibition) Act, 2022.
All four defendants pleaded guilty when the charges were read to them.
Following their pleas, Bilkisu Buhari, prosecution counsel, told the court that investigations showed the defendants admitted handing over their personal details to one Afeez Animashaun, who allegedly approached them at Mushin Market in Lagos, where they carried out their businesses.
According to the prosecution, the personal information was used to register several companies, including College Compass Eduguide Nigeria Limited, Hortifresh Solutions Nigeria Limited, Eduboost Innovation Nigeria Limited and Fixit Hardware and Tools Nigeria Limited.
The EFCC further alleged that corporate bank accounts were opened in the names of the companies and used to receive millions of dollars within January 2025.
Buhari told the court that the arrangement enabled the actual operators of the companies to remain anonymous while facilitating the movement of suspicious funds through Nigeria’s financial system.
She urged the court to convict the defendants based on their guilty pleas and impose appropriate sentences.
Justice Ogazi ordered that the defendants be remanded in a correctional facility and adjourned the matter until August 4, 2026, for judgment.
Dele Oye, chairman, Alliance for Economic Research and Ethics (AERE), has raised the alarm that an estimated eight million micro, small and medium enterprises (MSMEs) shut down across Nigeria between January 2023 and June 2024, representing about 20 per cent of the country’s estimated 40 million SMEs.
Dele Oye, chairman, Alliance for Economic Research and Ethics
He also warned that the scale of the collapse exposes a deepening crisis in the sector, describing it as an existential threat to Nigeria’s economic foundation.
He disclosed the figures in a policy brief titled “The Gap: Nigeria’s Industrial Policy 2025 vs. The Lived Reality of SMEs.”
According to Oye, research consistently shows that as many as 95 per cent of Nigerian SMEs fail within their first five years of operation, highlighting the urgent need for policies that go beyond design to effective implementation.
Quoting Femi Egbesola, national president of the Association of Small Business Owners of Nigeria (ASBON), Oye described the situation as a humanitarian crisis.
“Many businesses simply cannot cope with the harsh economic environment. Owners are closing their shops, unable to meet loan obligations or manage skyrocketing operational costs. Several people have died under the pressure; others are in the hospital. It’s a humanitarian crisis,” Egbesola said.
Oye identified three major factors driving SME failures: macroeconomic instability, limited access to affordable finance and soaring energy costs.
He, however, commended the Federal Government’s newly introduced Nigeria Industrial Policy 2025 (NIP2025), describing it as an ambitious framework designed to reposition the country’s manufacturing sector.
On the policy championed by the Federal Ministry of Industry Trade and Investment, Senator John Owan Enoh, minister of State for Industry, explained that it seeks to raise manufacturing’s contribution to Nigeria’s Gross Domestic Product (GDP) to 15 per cent by 2030 and 25 per cent by 2035, while boosting exports, creating jobs and positioning Nigeria as Africa’s leading industrial hub.
Oye noted that the policy rightly recognises MSMEs as central to achieving those objectives, pointing out that the sector contributes 46.32 per cent of Nigeria’s GDP and accounts for about 87.9 per cent of total employment.
He said the policy promises single-digit loans, industrial clusters, technology incubation centres, skills development programmes and fiscal incentives aimed at supporting businesses.
Despite these commitments, Oye argued that there remains a wide gap between policy intentions and the realities confronting entrepreneurs.
“For millions of Nigerian entrepreneurs struggling to survive, the NIP2025 reads less like a practical roadmap and more like a distant promise,” he said.
According to him, inflation, which climbed to 33.4 per cent in July 2024, persistent naira depreciation and the removal of fuel subsidies have sharply increased production and transportation costs, forcing many SMEs to downsize their workforce by as much as 70 per cent.
He also lamented the limited access to affordable financing, noting that only between 15 and 20 per cent of SMEs have access to formal bank credit. Where loans are available, he said, lending rates now exceed 35 per cent, making borrowing unsustainable for most small businesses.
Energy shortages remain another major burden, with businesses enduring prolonged power outages and relying heavily on generators.
Oye noted that diesel costs alone consume as much as 30 per cent of revenue for many SMEs.
He argued that previous industrial policies failed largely because of weak implementation rather than the absence of good ideas.
According to him, although government interventions have increased credit availability over the years, most SMEs use borrowed funds to cover operational expenses such as rent, inventory and energy costs instead of expanding production because of the difficult business environment.
To reverse the trend, Oye called on the Federal Government to declare an SME emergency and introduce targeted measures, including genuine single-digit interest loans, energy support for productive sectors and a moratorium on multiple taxation by state and local governments.
He also recommended loan products that align with SME cash flow cycles through longer repayment periods, revenue-based financing and appropriate grace periods.
In addition, he urged the government to prioritise the development of SME industrial clusters by providing reliable electricity, water, roads and security in selected locations within one year.
Oye further called for greater transparency through the National Industrial Development Monitoring System (NIDMS), recommending quarterly publication of detailed data on SME financing, beneficiaries, sectors and employment outcomes.
While describing Senator Enoh’s advocacy for NIP2025 as commendable, Oye stressed that Nigeria’s entrepreneurs need effective implementation rather than another policy document.
He said the policy would only succeed if it delivers tangible benefits to business owners, including bakery operators struggling with rising costs, transport operators forced to cut jobs because of higher diesel prices and artisans fighting to keep their businesses afloat.
“The ambition is right, the execution must now match it.”
MENXTT TECH NG, a Lagos-based technology company, has launched an initiative to make quality Dell laptops more affordable for Nigerians through flexible payment plans and extended warranty support.
The company said the initiative was aimed at helping students, entrepreneurs, professionals and small businesses acquire reliable computing devices despite rising technology costs.
According to the company, customers can now purchase premium pre-owned Dell Latitude, Dell Precision and Dell Inspiron laptops at competitive prices, with selected models available under staggered payment arrangements.
The laptops, it said, are designed to meet the needs of users ranging from students and office workers to architects, engineers, software developers, graphic designers and video editors.
Speaking on the initiative, the Co-Founder of MENXTT TECH NG, Mr Anthony Emeka Nwosu, said access to quality technology should not be limited by financial constraints.
“A laptop is no longer a luxury; it is an essential tool for education, business and career development.
“Unfortunately, many people are forced to settle for unreliable devices because of the high cost of new laptops.
“At MENXTT TECH NG, we want to bridge that gap by providing durable Dell business laptops at affordable prices, backed by a full one-year warranty and flexible payment plans.
“We want every student, entrepreneur, freelancer and business owner to have access to technology that helps them succeed,” he said.
Nwosu explained that every laptop undergoes comprehensive testing before delivery and comes with a one-year warranty, an original charger, a complimentary laptop bag, Windows 11 operating system and Microsoft Office Suite pre-installed.
He added that the company, an authorised Bitdefender Antivirus reseller in Nigeria, also installs genuine Bitdefender security software on every system to protect customers against cyber threats.
According to him, customers requiring additional productivity tools can also have licensed Foxit PDF software installed on their devices.
Nwosu said the flexible payment option was introduced in response to prevailing economic realities, enabling customers to spread payments over an agreed period.
He noted that the arrangement would make it easier for students, startups and growing businesses to acquire quality computers without placing excessive pressure on their finances.
Beyond laptop sales, the company provides information technology consultancy, computer repairs, software licensing, cybersecurity solutions and digital transformation services to organisations across Nigeria.
He reaffirmed the company’s commitment to supporting Nigeria’s digital economy by making dependable computing devices and enterprise technology solutions more accessible to individuals and businesses.
According to him, the initiative reflects MENXTT TECH NG’s vision of combining affordability, quality products and professional after-sales support to help more Nigerians participate in the country’s expanding digital ecosystem. (NAN)
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