FG earmarks N17.3 billion to insure MDAs, corps members

The Federal Government has allocated N17.3 billion in the 2025 appropriation bill to provide group life assurance for employees of ministries, departments and agencies (MDAs) and members of the National Youth Service Corps (NYSC) in the country.

The bill was presented by President Bola Ahmed Tinubu to the joint session of the National Assembly shortly before proceeding on Yuletide last. The allocation includes provisions for administration and monitoring costs to ensure effective programme implementation.

Group life assurance, mandated under Nigeria’s Pension Reform Act of 2014, requires employers in both public and private sectors to provide death benefits equivalent to at least three times an employee’s yearly salary in the event of an untimely death.

This policy extends not only to civil servants but also to critical security agencies like the Department of State Services (DSS).The N17.3 billion allocation will support the life assurance policies and cover the administrative expenses involved, reflecting the government’s commitment to ensuring transparency and efficient fund management.

In comparison, the 2024 budget earmarked N9.6 billion for insurance.The previous year’s allocation was intended to cover federal workers against unforeseen circumstances, ensuring that their families are financially supported in case of death or severe injury.

The Minister of Information and National Orientation, Mohammed Idris, stressed that this is a routine yearly cover provided by insurance companies for workers.

A former Managing Director of FSL Insurance Broker Limited, Alfred Daudu, commended the government for allocating to group life employees.

Daudu called on the industry regulator, National Insurance Commission (NAICOM), to work closely with the Nigerian Communications Commission (NCC), and the Central Bank of Nigeria (CBN), to ensure the development of the micro insurance scheme.