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Investigate N30bn Police, Military, others unsettled insurance claims – HoR

Published

3 months ago

November 20, 2024

By Gloria Ikibah

The House of Representatives has resolved to conduct a forensic probe into over N30bn unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service and Ministry of Defence.

The resolution was sequel to the adoption of a motion on, “Breaches and Other Infractions of some Federal Government Institutions on Insurance and Actuarial Matters using forensic auditors” moved by Rep. Sulaiman Gumi, member representing Gummi/Bukkuyum Federal Constituency of Zamfara State, on Wednesday at plenary.

The House noted that the unsettled claims were a result of a lack of owing actuarial valuation, gap analysis, and non-compliance with Section 57 of the Insurance Act, 2023, and Section 4, Subsection 5 of the Pension Reform Act, 2014, among others.

Rep. Gumi noted that while conventional insurance is struggling with outdated insurance laws, there is a dearth of professional loss adjusters and irregular payment of loss adjusters fees, non-remittance of premiums, especially to reinsurers, lack of innovation and inconsistent government policies within the insurance industry.

According to him all these and a lack of cooperation within the insurance industry coupled with poor governance issues in the industry as well as weak regulatory bodies as a result of moribund laws, lead to the failure of many banks, especially microfinance banks.

The lawmaker also identified the failure to collaborate effectively with the Central Bank of Nigeria and the Assets Management Company of Nigeria to secure financial stability in the Nigerian economy and the cumbersome process of failure resolution and reimbursement of depositors, as some of the challenges facing the industry.

He said, “The House is concerned that non-transparency and lack of accountability in insurance practice in Nigeria today have resulted in over N30bn unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service (for Federal Civil Servants), and Ministry of Defence (for the Nigerian Armed Forces) because of no actuarial valuation, no gap analysis, and non-compliance with Section 57 of the Insurance Act, 2023, and Section 4, Subsection 5 of the Pension Reform Act, 2014, among other factors;

“We are aware that over $1bn that should have been retained in Nigeria if all insurance practitioners are given the option of the right of first refusal (insurance being more about risk bearing and sharing) is being taken abroad, which affects the nation’s economy, thereby always weakening our insurance sector and depleting our foreign reserve.

“These breaches and infractions have given rise to excessive cession and retrocession of businesses in breach of the Local Content Act to the extent that 90 per cent of the risks of some Federal Government organisations are placed outside the country.”

Rep. Gumi stated that the effect of this development has led millions of families of the deceased Federal Government’s personnel that are the beneficiaries suffering because they were not paid the entitlement of their breadwinners.

“When paid, in some cases, unallowed deductions are made, thereby shortchanging them.

“The House is worried that the Committee on Insurance and Actuarial Matters letters to the Ministries, Department and Agencies like the Nigerian Ports Authourity, the Nigerian National Petroleum Company Limited, National Emergency Management for either document to enable them oversight or appear before the Committee to address these issues are being treated with ignominy”, he added.

This, he stressed, will soon become the rules rather than the exceptions that will negatively impact the overall oversight functions of the House of Representatives, if not nipped in the bud.

The lawmaker further stated that there are huge unsettled life claims in Nigeria, because the premiums meant for payment were suspected to have been squandered by some insurance companies and a few individuals, and it is only a forensic auditor that will unravel this.

The motion was unanimously by lawmakers and referred to the Committee on Insurance and Actuarial Matters to report back to the House within four weeks for further legislative action.

Related Topics:Investigate Nigeria Nigerian Police Zamfara

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Speaker Abbas Hails Governor Bago @51

Published

57 minutes ago

February 22, 2025

Gloria Ikibah

By Gloria Ikibah

The Speaker House of Representatives Rep. Tajudeen Abbas, has congratulated the Governor of Niger State, Hon. Umar Mohammed Bago, on his 51st birthday, saying the governor is a blessing to his people.

In a statement by Speaker Abbas, he commended Governor Bago who is also called the ‘Farmer Governor’ for revolutionising agriculture in Niger State, noted that the impact of the reforms is being felt across Nigeria.

The Speaker specifically hailed Governor Bago for prioritising food production at a time the country is making efforts to diversify the economy from oil.

Speaker Abbas said Governor Bago excelled as a member of the House of Representatives and is presently one of the best performing governors in the country.

He wished Governor Bago many more years on earth, in service to this fatherland, and prayed to Allah to grant him good health and wisdom to continue to manage the affairs of Niger State.

News

Betara Celebrates Governor Bago @51

Published

3 hours ago

February 22, 2025

Gloria Ikibah

…commend his leadership qualities, contribution to national development

By Gloria Ikibah

The Chairman House of Representatives’ Committee onthe Federal Capital Territory (FCT), Rep. Muktar Betara has congratulated Governor of Niger State, Mohammed Bago on his 51st birthday.

Rep. Betara who represents Biu/Bayo/Shani/Kwaya Kusar Federal Constituency of Borno State, in a congratulatory message admitted Governor Bago’s relentless advocacy for Nigerites as well as the meaningful contributions to legislative processes that shaped national development while serving as Member of the House of Representatives.

Thrilled by the leadership qualities of Governor Bago, he applauded various unprecedented developmental projects initiated since his assumption of office in 2023.

He said: “Your Excellency, on this special occasion of your 51st birthday, I extend my heartfelt congratulations and best wishes to you.

“This milestone is a testament to a life dedicated to public service, leadership, and unwavering commitment to the progress of Niger State and Nigeria at large.

“As the Governor of Niger State, your visionary leadership has continued to inspire hope and transformation across various sectors.

“Your dedication to infrastructural development, education, healthcare, and especially, agriculture, and security has significantly improved the lives of the people, reinforcing your reputation as a leader who prioritises the welfare of his people.

“Your efforts in fostering economic growth and good governance have set a solid foundation for sustainable development in the state.

“Before assuming office as Governor, your impactful tenure as a Member of the House of Representatives was marked by your relentless advocacy for your constituents and meaningful contributions to legislative processes that shaped national development.

“As you celebrate this new chapter of your life, may you continue to be blessed with wisdom, strength, and good health to steer Niger State toward greater heights. Happy birthday !”

News

Nigeria Seeks Stronger Economic Ties with China

Published

4 hours ago

February 22, 2025

Gloria Ikibah

…as currency swap boosting bilateral trade

By Gloria Ikibah

The Nigerian government is deepening economic collaboration with China to drive industrialisation and economic diversification.

Minister of State for Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, made this known when she received the Chinese Ambassador to Nigeria, Yu Dunhai, in Abuja.

The Minister emphasised that Nigeria’s longstanding ties with China, spanning over five decades, align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises economic expansion and resilience.

Outlining key areas where Nigeria seeks Chinese support, including electric vehicle production, digital technology, renewable energy, and agriculture, Amb. Odumegwu-Ojukwu acknowledged China’s significant role in Nigeria’s road and rail infrastructure development and noted that the country is taking concrete steps to modernize its ports and power sector to attract more investment.

She also highlighted the importance of cultural ties, and noted the growing interest among Nigerian youths in learning the Chinese language.

The minister reaffirmed Nigeria’s commitment to strengthening its economic partnership with China, highlighting that the ongoing currency swap agreement is already enhancing trade relations between both nations.

“It’s quite interesting that a large population of Nigeria youth is inching towards Chinese Language. A lot of Nigerian Universities are desirous to offer Chinese Language. Chinese had become the language of trade in the world.

“Nigeria-China will continue to relate not just bilaterally but multilaterally.

“We expect that we will continue to get the support of China but we will always reciprocate that multilaterally.

“In line with President Tinubu’s plan to industrialise Nigeria, we expect Chinese cooperation in establishing assembly plants of electric vehicles; digital communication, renewable energy, all aspects of digital technology, agriculture because of food insecurity as the government is interested in seeing that food gets to the poorest of the poor. Government is not just talking about food but has established a separate Ministry of Livestock,” the minister stated.

She urged China to extend trade tariff exemptions to its exports, similar to the concessions already granted to 33 other African nations, emphasising that the Renewed Hope Agenda prioritizes stronger ties between citizens and deeper country-to-country partnerships.

In response, Chinese Ambassador Yu Dunhai reaffirmed China’s commitment to strengthening its relationship with Nigeria, describing the country as a key strategic partner. He noted that President Bola Ahmed Tinubu’s visit to China and participation in the Forum on China-Africa Cooperation (FOCAC) had elevated diplomatic and economic engagements between both nations.

Amb. Yu highlighted ongoing collaborations in infrastructure, including roads, railway modernization, power, industrial parks, and the Lekki Deep Sea Port. He disclosed that trade volume between the two nations exceeded $21 billion last year, with Nigeria’s exports to China accounting for over 25% of this figure.

He further underscored the role of manufacturing in industrialization, pointing to the recently renewed $2 billion currency swap agreement as a tool to enhance financial cooperation, boost bilateral trade, and attract more investment.

Expressing optimism about the future, the envoy stated that these efforts would ultimately yield tangible benefits for ordinary citizens in both countries.

He said: “We have a comprehensive strategic partnership with Nigeria. China would want Nigeria to play a big role in the international scene. We want Nigeria to become a member of G-20. These will all provide opportunity for China and Nigeria to further work together closely.

“For China, we have been very consistent. We give grant to any African countries; we don’t give any conditions.”

He further acknowledged that it was important that the two countries met to review how far they have performed in their bilateral cooperation.

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