House of Representatives launches investigation into N30bn police, military unsettled insurance claims

The House of Representatives has launched an investigation into alleged mismanagement of over N30 billion in group life insurance claims meant for the Nigeria Police Force, federal civil servants, and the Nigerian Armed Forces.

The probe, spearheaded by the Committee on Insurance and Actuarial Matters, aims to uncover the reasons behind the unsettled claims, which lawmakers say breach Section 57 of the Insurance Act 2023 and Section 4, Subsection 5 of the Pension Reform Act 2014.

The motion, titled “Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors,” was moved by Hon. Sulaiman Gumi, representing Gummi/Bukkuyum Federal Constituency in Zamfara State.

Gumi expressed concern over the lack of transparency and accountability within Nigeria’s insurance sector, citing the devastating impact on families of deceased federal personnel who remain unpaid. “The House is concerned that lack of transparency and accountability in insurance practice in Nigeria today has resulted in over N30 billion 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).

“The development has led to 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,” he lamented.

He also highlighted economic implications, noting that over $1 billion, which could have been retained in Nigeria’s economy stating, “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, is being taken abroad, which affects the nation’s economy, thereby always weakening our insurance sector and depleting our foreign reserves.”

The lawmaker raised concerns about violations of the Local Content Act, with an estimated 90 per cent of risks associated with some federal agencies reportedly ceded to foreign firms. “These breaches 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,” Gumi warned.

He further criticized federal agencies and ministries for ignoring oversight communications from the House, a trend he described as a growing threat to legislative authority.

The House resolved to refer the matter to the Committee on Insurance and Actuarial Matters for a forensic audit, with a mandate to report back within four weeks. Lawmakers unanimously supported the motion during Wednesday’s plenary, emphasizing the need for urgent legislative intervention to address these systemic lapses.

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