The House of Representatives has directed its Committee on Insurance and Actuarial Matters to conduct a forensic investigation into over ₦30 billion in unsettled insurance claims involving the Nigeria Police Force, the Head of Service, and the Ministry of Defence. 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,” moved by Sulaiman Gumi, representing the Gummi/Bukkuyum Federal Constituency of Zamfara State.
Gumi highlighted key issues plaguing the insurance sector, including outdated laws, lack of professional loss adjusters, irregular payment of adjusters’ fees, non-remittance of premiums to reinsurers, and inconsistent government policies. He noted that non-compliance with Section 57 of the Insurance Act, 2023, and Section 4(5) of the Pension Reform Act, 2014, contributed significantly to the backlog of unpaid claims.
The lawmaker also pointed out that over $1 billion, which could have been retained in Nigeria, is lost to foreign insurers due to excessive cessions and retrocessions in breach of the Local Content Act. This practice, he argued, weakens the domestic insurance sector and depletes foreign reserves.
Gumi expressed concern over the impact of these failures on the families of deceased federal employees who have been denied entitlements or subjected to unjust deductions. He accused some insurance companies and individuals of mismanaging premiums meant for claim settlements, emphasizing the need for forensic audits to uncover the irregularities.
Additionally, Gumi criticized the lack of cooperation from Ministries, Departments, and Agencies (MDAs), including the Nigerian Ports Authority and the Nigerian National Petroleum Company Limited, in providing documents or appearing before the committee for oversight.
The motion received unanimous support during Wednesday’s plenary. The committee is expected to report its findings within four weeks for further legislative action.