OrderPaperToday– The House of Representatives has resolved to investigate infractions, breaches and impunity of some federal government agencies on insurance and actuarial matters which has led to the loss of billions of naira to the country.
This followed a motion of urgent national importance on “Need to investigate the breaches, impunity and other infractions of some federal government institutions on insurance and actuarial matters and the need to ensure probity” presented to the House by Mr. Gideon Gwani (Kaduna, PDP).
Mr. Gwani explained that the practice of domiciling some insurance ventures outside the country tremendously promotes money laundering and illicit financial flows to the tune of several billions of naira in the insurance sector.
According to him, “international oil companies through NAPIMS (National Petroleum Investment Management Services), Nigeria Satellite Communications Limited on the insurance of NICMSATIR are all suspected to be in breach of the various laws.
“Several billions are suspected to be paid as premium annually on either non existence assets or on unverifiable data with adjusted premium in breach of section 61 of insurance act 2003. The ineffective regulation of foreign placements of insurance has made it impossible for the Nigeria insurance sector to contribute meaningfully to the Gross Domestic Product (GDP) of Nigeria as against 2.8% in the United States of America”.
The lawmaker said that the aforementioned institutions were currently renewing their insurance with suspected existing breaches which would put Nigeria at serious economic and social advantage that could cause the country to lose billions of naira.
Gwani added, “foreign reserve is highly depleted due to unchecked huge retrogression of business because each business placed abroad amounts to importation of service that has direct impact on our foreign reserve”.
Meanwhile, the House resolved to mandate the House committee on Insurance and Actuarial Matters to identify any breaches and ascertain the veracity of the alleged infractions.
The also resolved to suspend all the 2020 insurance renewal process of some of the institutions till investigations are completed.