Standardizing Made-in-Nigeria Products: Risk Mitigation Gaps as Insurance Operators Miss SON-MAN MANCAP Forum

Strengthening Standardization with Insurance in the SON-MAN MANCAP Drive

The push for standardization of Made-in-Nigeria products reached a milestone on February 11, 2025, when the Standards Organisation of Nigeria (SON) and the Manufacturers Association of Nigeria (MAN) convened a Stakeholders’ Forum on the Mandatory Conformity Assessment Programme (MANCAP) at MAN House, Ikeja, Lagos. The event underscored the Federal Government’s commitment to ensuring quality assurance, market competitiveness, and international recognition of locally produced goods. However, a critical stakeholder was missing from the discussion—the insurance industry—whose absence highlighted a major gap in the conversation around risk mitigation in product standardization.

Why Insurance Matters in the Standardization Process

Standardization goes beyond setting product benchmarks; it involves managing risks associated with compliance, production failures, liabilities, and market penetration. While SON and MAN set the technical frameworks, insurance operators play a vital role in ensuring sustainability and financial protection. Their absence at the MANCAP forum meant the loss of key input in the following areas:

1. Product Liability Protection: Ensuring that manufacturers have coverage against claims arising from defective products that may cause harm to consumers. Without insurance, businesses remain exposed to legal and financial risks.
2. Business Interruption Coverage: Standardization requires investments in machinery and process upgrades. Insurance helps companies recover from unexpected disruptions that may halt production and affect compliance.
3. Supply Chain & Logistics Insurance: Many Nigerian manufacturers struggle with raw material shortages and logistics risks. With standardization efforts tied to efficient supply chains, insurance coverage would have offered solutions for securing goods in transit.
4. Credit Insurance for SMEs: Standardization is often capital-intensive, requiring funding for compliance. Credit insurance can enable manufacturers—especially SMEs—to access finance while safeguarding lenders from defaults.

The Risk Factor in Standardization

• The Food & Beverage Industry:
  In 2023, a leading Nigerian food processing company suffered a product recall due to contamination issues. Without adequate product liability insurance, the company faced heavy financial losses and reputational damage. Had insurance operators been part of the MANCAP discussions, they could have advised on risk mitigation strategies for food safety compliance.

  

• The Pharmaceutical Sector:
  Nigerian drug manufacturers striving to meet World Health Organization (WHO) prequalification often require Good Manufacturing Practice (GMP) certification. Insurance coverage for equipment failure and regulatory compliance would have been a key discussion point at the forum to ease the financial burden of standardization.
• The Textile Industry:
  Several Nigerian textile firms have collapsed due to the inability to meet global standards on eco-friendly production. Standardization requires investment in modern technology, which is high-risk and capital-intensive. Insurance solutions could have helped manufacturers transition smoothly without financial strain.

Looking Ahead: The Call for Insurance Integration in Standardization Efforts

The omission of insurance industry representation at the SON-MAN MANCAP Forum signals the need for a more inclusive approach to product standardization. Moving forward, key players such as the National Insurance Commission (NAICOM) must engage actively in policy discussions, ensuring that manufacturers understand the risk management benefits of insurance in compliance efforts.

Without insurance backing, manufacturers remain vulnerable to production failures, liability claims, and financial losses—all of which could jeopardize the success of Made-in-Nigeria products in global markets. As Nigeria marches toward a $1 trillion economy, integrating insurance solutions into the standardization ecosystem is not just necessary—it is indispensable.

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