The House of Representatives directed its Committee on Insurance and Actuarial Matters to launch a forensic investigation into over ₦30 billion in unsettled insurance claims linked to the Nigeria Police Force, the Ministry of Defence, and the Head of Service for federal civil servants.
This decision followed the adoption of a motion titled “Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors,” presented by Sulaiman Gumi, representing Gummi/Bukkuyum Federal Constituency in Zamfara State.
Gumi highlighted significant gaps in the insurance industry, including outdated laws, non-compliance with regulatory frameworks, and insufficient actuarial evaluations.
He pointed to breaches of Section 57 of the Insurance Act, 2023, and Section 4(5) of the Pension Reform Act, 2014, as contributing factors to the unsettled claims.
“The House is concerned that the lack of transparency and accountability in Nigeria’s insurance sector has resulted in over ₦30 billion in unpaid group life insurance claims for the Nigeria Police Force, federal civil servants, and the Nigerian Armed Forces,” Gumi said.
He further noted that approximately $1 billion, which could have been retained in the country, is lost annually due to the excessive placement of insurance risks abroad, violating the Local Content Act.
“This weakens our insurance sector, depletes foreign reserves, and negatively impacts the economy,” he added.
The motion also raised concerns about unremitted premiums, irregularities in paying loss adjusters, and the difficulties families of deceased government personnel face in accessing their entitlements.
“Some beneficiaries are either not paid or are shortchanged through unauthorized deductions,” Gumi said.
The Committee on Insurance and Actuarial Matters was tasked with investigating the issues and reporting back within four weeks for further legislative action. Lawmakers unanimously supported the motion, emphasizing the urgent need for reform and accountability in the insurance sector.
