MDAs continue to disregard FG’s directive to ensure assets

Despite the Federal Government’s declaration that all government assets should be insured, many government parastatals, Ministries, Departments, and Agencies (MDAs) continue to disregard the directive.

Dr. Muda Yusuf, Immediate Past Director General of the Lagos Chamber of Commerce and Industry, LCCI, who made this claim, noted that many MDAs do not even have a budgetary provision for insurance premiums.

Yusuf also noted that budgetary allocations to insurance premiums by MDAs, where they are made, are grossly inadequate. He was speaking at a retreat for insurance journalists organized by the Insurance Industry Consultative Council, IICC, in Ijebu Ode Ogun State over the weekend.

Using an example, Yusuf stated that the Head of Service has a total budget of N8.4 billion but has a budgetary provision for insurance premiums of N16.3 million, which accounts for only 1.9 percent of the total budgeted figure.

The Economic and Financial Crimes Commission, or EFCC, has a budgetary provision of N43.2 billion, with a provision for insurance premiums of 213 million, or 0.5% of the total.

The Federal Road Safety Corps has a budget of N43.2 billion, with an insurance premium provision of N250 million, or 0.4%.

The Police Command has a budgetary provision of N805 billion, with a provision for insurance premiums of N394 million, representing 0.05 percent of the fund.

“Budgetary allocations to insurance premium by MDAs are grossly inadequate, and many MDAs do not even have any budgetary provision for insurance premium,” he added. Concerns have also been raised about the centralization of insurance premiums in the office of the Head of Service.”

He stated that the country’s large population, large domestic economy with extremely low penetration and density, admission of new operators by supportive regulator, mature reinsurance industry, significant investment appetite by local investors, positive regulatory partnership, and changes to develop pension savings are the country’s strengths.