There are growing fears that annuitants of the defunct Niger Insurance Plc may soon face disruptions in their payments. The Pension Fund Custodian (PFC) currently managing these annuities could soon deplete its funds, as no new capital has been injected into the scheme following the withdrawal of the company’s operating license.
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At a recent interactive session in Lagos, the National Insurance Commission (NAICOM) confirmed that the annuity funds have been ring-fenced and are under the management of a PFC.
However, investigations suggest that the fund may be exhausted soon due to the lack of new inflows. The high possibility of fund depletion has led to discussions about transferring the annuity portfolio to a life insurance company to ensure continued payments.
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NAICOM had revoked Niger Insurance’s operating license in 2022, a decision that faced challenges from the company’s investors. A recent court verdict upheld NAICOM’s decision, finalizing the license cancellation. Former Commissioner for Insurance, Sunday Thomas, noted that despite providing Niger Insurance opportunities to recover, the firm failed to meet its obligations, leading to the license revocation.
Source: Inspenonline
