December 2025 Edition

ROLE OF MICRO-INSURANCE IN ENHANCING FINANCIAL INCLUSION AMONG SELECTED MICRO ENTERPRISES IN LAGOS STATE

DANSU, Sewhenu Francis OGHENEDORO, Oghenetega Grace And SAFIU, Ismaila Owolabi

Abstract

This study examines how micro-insurance availability, affordability,
and quality affect financial usage among micro-enterprises in Lagos
State. By improving resilience, stability, and engagement with formal
financial systems, the study aims to determine whether microinsurance
increases financial inclusion. Based on a cross-sectional survey design,
a structured questionnaire was administered to 200 micro-enterprise
owners selected from the Association of Micro-Enterprises of Nigeria
(AMEN). A content validity test and a Cronbach's Alpha reliability test
were conducted, resulting in a score of 0.73, and hypotheses were tested
with regression analysis via SPSS version 23. It is found that the
availability and affordability of micro-insurance services positively
influence financial usage, even though this influence is insignificant.
The quality of micro-insurance services, however, demonstrated a
significant, statistically significant influence on financial usage,
accounting for 10.3% of the variance. According to the study, when all
metrics are combined, micro-insurance contributes to financial
resilience, encourages saving and credit usage, and increases
confidence in formal financial institutions. A customer-centred
insurance product design, improved microinsurance accessibility, and
increased awareness campaigns might enhance SMEs' involvement in
financial services. Providing insights crucial for policymakers,
regulators and insurers aiming to promote sustainable development and
strengthen micro-enterprise resilience, this study examines how micro
insurance contributes to financial inclusion in Lagos State.

Keywords

Product affordability; Product availability; Product quality; SME involvement

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