The House of Representatives has called for probe into N30 billion in unsettled claims for the Police, the Defence Ministry and the Head of Service of the Federation......Read The Full Article>>.....Read The Full Article>>
Following the adoption of a motion at plenary on Wednesday, the House mandated its Committee on Insurance and Actuarial Matters to conduct a forensic investigation into the matter.
The motion, titled “Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors”, was moved by Rep Sulaiman Gumi, representing Gummi/Bukkuyum Federal Constituency of Zamfara State.
Gumi expressed concerns over a number of issues within in the insurance industry, citing outdated laws, a shortage of professional loss adjusters, irregular payment of adjusters’ fees, and non-remittance of premiums to reinsurers.
He also highlighted the lack of synergy between supervisory institutions like the Central Bank of Nigeria (CBN) and the Assets Management Corporation of Nigeria (AMCON). The trend, he noted, has continued to undermine financial stability in the economy.
The legislator attributed the lapses to failures in actuarial valuation, gap analysis, and non-compliance with Section 57 of the Insurance Act, 2023, as well as Section 4, Subsection 5 of the Pension Reform Act, 2014.
“The House is concerned about the lack of transparency and accountability in insurance practices in Nigeria, which has resulted in over ₦30 billion in unpaid group life insurance claims for personnel of the Nigeria Police Force, federal civil servants, and members of the Armed Forces,” Gumi stated.
He also observed that an estimated $1 billion in potential insurance business is being lost to foreign markets due to excessive cession and retrocession of risks in violation of the Local Content Act. “This weakens our insurance sector, depletes foreign reserves, and leaves many families of deceased government personnel without financial support,” he said.
Rep Gumi further alleged that some insurance companies and individuals have misappropriated premiums meant for life claims, leading to significant suffering for beneficiaries. He argued that only a forensic audit could uncover the extent of the infractions.
The motion also addressed the lack of cooperation from certain government agencies, including the Nigerian Ports Authority (NPA)and the Nigerian National Petroleum Company Limited (NNPCL). It noted that the two agencies have reportedly ignored requests for oversight and documentation.
Ruling on the motion, Speaker, Tajudeen Abbas mandated the Committee to commence investigation and to submit its findings and recommendations within four weeks.
