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The House of Representatives has directed its Committee on Insurance and Actuarial Matters to conduct a forensic investigation into unsettled group life insurance claims exceeding ₦30 billion. These claims pertain to the Nigeria Police Force, Federal Civil Servants under the Head of Service, and the Ministry of Defence for the Nigerian Armed Forces.
Compliance Breaches Highlighted
The House noted that the unresolved claims stem from non-compliance with provisions of:
- Section 57 of the Insurance Act, 2023, and
- Section 4, Subsection 5 of the Pension Reform Act, 2014.
The motion initiating the probe, titled “Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors,” was moved by Sulaiman Gumi, representing Gummi/Bukkuyum Federal Constituency of Zamfara State.
Concerns Over Mismanagement
Gumi raised concerns about a lack of transparency and accountability in Nigeria’s insurance sector, citing the following issues:
- Over $1 billion is being funneled abroad annually due to inadequate implementation of local content provisions, weakening the nation’s insurance industry and depleting foreign reserves.
- Families of deceased federal personnel suffer as their entitlements remain unpaid or are subjected to unlawful deductions.
- Excessive offshore placement of Federal Government risks breaches the Local Content Act, with 90% of some government agencies’ risks placed outside Nigeria.
Impact on Families and Oversight Functions
The unresolved claims have left millions of families without financial support following the deaths of breadwinners in service. Additionally, Gumi lamented that federal agencies’ lack of response to oversight communications could undermine the authority of the House of Representatives.
Next Steps
The motion received unanimous support during Wednesday’s plenary session. The Committee on Insurance and Actuarial Matters has been tasked with reporting its findings within four weeks for further legislative action.
This investigation aims to enhance accountability in the insurance sector and ensure compliance with local and international laws.
