FG to offset N10bn premiums owed insurance companies

By Favour Nnabugwu

Respite came the way of Nigerian insurance industry yesterday, as the Federal Government promised to offset outstanding premiums owed the sector as soon as the economic situation of the country improves. Cumulative premium on group life insurance owed the insurance industry by the Federal Government is said to be in excess of N10 billion.

Minister of Finance, Mrs Kemi Adeosun, at the National Insurance Commission (NAICOM) 2015 staff retreat in Abuja said government was cautious of its debt to the sector and will endeavour to clear it as soon the nation recovers from the economic downturn. Adeosun said, “government meeting its responsibility of paying premiums to some extent is a challenge; you will also agree with me that there is a serious situation in the country in terms of revenue that accrues to government.

“The tasks ahead are onerous and it is the expectation of government that the Nigerian insurance industry should wake up to its responsibilities and as a potential growth area of our economy, it must accept the challenges of change.

“It must surmount its timidity, shape up and contribute to the turn around of the  economy. It must contribute positively to the Gross Domestic Product (GDP) and creation of employment. It can achieve these by cleaning itself of the bad eggs within itself and by improving its services to its consumers.”

Welcoming the various cadres of staff of NAICOM earlier, the Commissioner for Insurance, Alhaji Mohammed Kari, noted that the insurance industry has made frantic efforts at recovering Federal Government’s outstan-ding premiums owed the companies.