The Nigerian House of Representatives has tasked its Committee on Insurance and Actuarial Matters with conducting a forensic investigation into over N30 billion in unsettled claims in the group life insurance policies for personnel of the Nigeria Police Force, the Head of Service, and the Ministry of Defence.
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This action follows concerns over non-compliance with relevant sections of the Insurance Act 2023 and the Pension Reform Act 2014. The decision came after the House adopted a motion titled “Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors,” which was moved by Mr. Sulaiman Gumi, the representative of the Gummi/Bukkuyum Federal Constituency of Zamfara State.
Mr. Gumi expressed concern over the lack of transparency and accountability in the insurance sector, which he claimed has resulted in the non-payment of significant claims to the families of deceased federal government personnel. He also noted that billions of dollars in insurance funds that could support the local economy are being diverted abroad due to improper insurance practices, including excessive cessions and retrocessions that violate the Local Content Act. This, he said, undermines Nigeria’s insurance industry and depletes its foreign reserves.
The motion also pointed out that federal government agencies are often unresponsive to the committee’s inquiries, which Gumi described as a threat to the House’s oversight functions.
Following the adoption of the motion, the House referred the matter to the Committee on Insurance and Actuarial Matters, with a mandate to report back within four weeks.
