The Federal Government has promised to offset outstanding premiums owed the insurance industry 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 made the disclosure at the National Insurance Commission (NAICOM) 2015 staff retreat in Abuja. According to her, the government is cautious of its debt to the sector and will endeavour to clear it as soon the nation recovers from the economic downturn.
“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,” Adeosun said.
“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.”