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

Published

5 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 Gumi noted that while conventional insurance is struggling with outdated insurance laws, there is a dearth of professional loss adjusters and irregular payment of loss adjusters fees, non-remittance of premiums, especially to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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Reps Tackle CBN, OAGF Over Missing Grants, Bailout Funds

Published

7 hours ago

April 17, 2025

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has commenced investigations into the utilisation of take-off grants, bailout funds, and interventions allocated to government institutions, from 2015 to present.

The Special Committee received submissions from the Central Bank of Nigeria (CBN), Office of the Accountant General of the Federation (OAGF), Economic and Financial Crimes Commission (EFCC) and Federal Ministry of Health, among others on Thursday.

Naijablitznews.com recalled on March 6, 2025, the Speaker Tajudeen Abbas, set up the special committee sequel to the adoption of a motion of urgent public importance, by the House Minority Leader, Rep. Kinglsey Chinda at plenary.

Rep. Chinda noted that over the years, various agencies and institutions, both old and newly created have received start-up funds and special financial support from the government to help with their initial operations and meet specific needs, including settling pending obligations.

He expressed concern that there have been ongoing reports pointing to the misuse or redirection of these funds, which may prevent them from being applied to the purposes for which they were originally intended.

According to him, such financial mishandling not only disrupts critical public services and projects but also results in major losses to the nation’s purse—resources that could have been channelled into crucial services and developmental efforts, as laid out in Section 14(2)(b) of the Constitution.

Speaker Abbas, thereafter setup a Special Committee to be chaired by Rep. Chinedu Martins to immediately launch a probe into the “Utilisation of take-off grants, bailout funds, and interventions allocated to MDAs, government institutions, and GOEs from 2015 to present.”

Standing in for the Governor of the Central Bank, the Acting Director of Development Finance, John Hammah, assured the committee of the bank’s willingness to collaborate fully in helping it achieve its objectives.

Hammah, said he was representing Olayemi Cardoso, who is currently out of the country, appealed to the committee for some time to gather and organise the relevant details needed for their ongoing work.

He said: “Mr Chairman and Honourable members, We got the invitation to appear before you yesterday and we hurriedly put this report together. We now understand the broad scope of your assignment and that you need accurate data covering the period 2015 to date. We plead with this committee to give us additional time to enable us to furnish you with to date report as requested”.

Following extended discussions, the Committee Chairman Chinedu Martins granted the Central Bank a two-week window, instructing that the CBN Governor must appear in person before the Committee on May 2, 2025.

In a similar move, representative of the Office of the Accountant General of the Federation, James Abalaka, was also given two weeks to return with a detailed breakdown of disbursements, and highlighting which agencies received funds and the exact timelines.

The Economic and Financial Crimes Commission (EFCC) was also in attendance, as the Commission’s Secretary, Muhammad Hammajoda, called on the Accountant General’s office to provide the EFCC with the necessary disbursement records related to the various MDAs.

“We want a formal report detailing the amounts and purpose of disbursement. This is the format we want the report to come from the secretariat. When we get these documents, we will sit down and analyse them”, he stated.

Speaking on behalf of the Minister of Health and Social Welfare, Prof. Ali Pate, Deputy Director Accounts, Olatunde Makinde, explained that the Ministry only received the Committee’s invitation earlier that Thursday.

To ensure accurate and complete information is provided, he requested additional time so the Ministry could gather the necessary documents before appearing.

“We don’t want to give you inaccurate information. We want to seek indulgence and understanding to give us time to reach out to the institutions under us and get an accurate view. There are many of them across the 36 states of the Federation,” he said.

Earlier, while declaring the investigation open the Speaker of the House of Representatives, represented by the House Leader, Rep. Julius Ihonvbere outlined the significance of the exercise.

He said: “The House has implicit confidence in the Committee’s capacity to conduct a thorough, impartial, and transparent investigation, engaging with relevant stakeholders, and gathering evidence to inform its findings.

“Our overall goal is to promote good governance, optimise public resource utilisation, enhance accountability in government business and equally strengthen our democracy.”

Also in his welcome address, the Committee Chairman, Rep. Martins reiterated that the purpose of the investigating hearing is to ensure that Nigerians get value for their money.

“It is imperative that we thoroughly investigate how these funds have been utilised, ensuring that every naira spent is accounted for and that it has truly benefited our citizens. Therefore, I would like to urge heads of agencies and organisations present today to provide truthful and accurate information to this committee in order to enable us to carry out our work.

“The hearing is not a witch-hunting exercise; rather, it is an opportunity for all stakeholders to come together in the spirit of cooperation. I assure all participants that we are committed to a fair hearing and respectful dialogue through this process,” he said.

News

Abuja light rail project must be commissioned on May 29-Wike vows

Published

7 hours ago

April 17, 2025

ADMIN

The FCT Minister, Mr. Nyesom Wike, expressed satisfaction with the progress on the Abuja light rail project, reaffirming its May 29 delivery as sacrosanct.

He made these assurances after inspecting the ongoing construction of access roads to the train stations on Wednesday, from Metro Train Station in the Central Area to Nnamdi Azikiwe International Airport, Abuja.

Reassuring journalists accompanying him, the minister reiterated that President Bola Tinubu would commission the rail project on May 29 to mark his second year in office.

The visited stations were Wupa station near Idu and Bassanjiwa station near the airport.

“This is part of our routine inspection of ongoing projects to see the contractors’ progress,” Wike explained.

“We are working day and night to fulfill our promise to President Tinubu and FCT residents. By May, Mr. President will ride on the Metro line.”

News

Just in: Alleged Herdsmen Armed With AK-47 Rifles Take Over Communities In Benue State

Published

8 hours ago

April 17, 2025

ADMIN

Gunmen suspected to be Fulani herdsmen are currently invading some communities in the Ukum Local Government Area of Benue State.

According to sources, the herdsmen armed with AK-47 rifles stormed the community around 04:15pm on Thursday.

“Our lives are in danger this evening, armed Fulani herdsmen, about 600 in numbers have taken over our communities this evening,” a resident told SaharaReporters.

“They’re currently moving around towns in Ukum Local Government Area of Benue state. No security personnel at all, Governor Alia didn’t send security, they said operation will start soon once they (herders) have observed the place.”

The insecurity situation in Benue has been alarming in recent weeks with attacks from gunmen suspected to be herdsmen.

The media had reported that suspected herdsmen again unleashed terror in Benue State, attacking three communities in Otukpo Local Government Area (LGA) on Wednesday, just a day after 11 people were killed in a deadly raid on Otobi community.

The latest victims of the escalating violence were Emichi, Odudaje, and Okpamaju, communities that had previously suffered an attack in February, which left five people dead.

However, the renewed attack has created fear and mass displacement among residents, with women and children fleeing to safety.

Local sources say the death toll from the fresh attack remains unclear, but several casualties are feared.