Yemisi Izuora
The Federal Government has promised that as soon as it recovers from its current financial crises it will hasten to pay outstanding premiums owed the sector.
Cumulative premium on Group life insurance owed the insurance industry by the Federal Government is said to be about N10 billion.
Minister of Finance, Mrs Kemi Adeosun, said at the National Insurance Commission (NAICOM) 2015 staff retreat in Abuja that government 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.”
The Commissioner for Insurance, Alhaji Mohammed Kari in his remarks noted that the insurance industry has made frantic efforts at recovering Federal Government’s outstanding premiums owed the companies.