Life Insurance: FG Approves Over N9 Billion for Public Servants

The Federal Government has approved over N9 billion as life insurance for Nigerian public servants, the Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, disclosed this at the end of the weekly Federal Executive Council meeting in Abuja. 

Briefing State House correspondents at the end of the Council meeting presided over by Vice President Yemi Osinbajo, Zainab Ahmed noted the memo was presented to Council by the Head of the Civil Service of the Federation, Dr Folashade Yemi-Esan.

The sum of N9.24 billion which was approved will cover the period of 2022 and 2023. It will cover all government officials irrespective of the department or agency within the period. 

“The Head of Service of the Federation presented a memo to the Council on Group Life Insurance Cover for the period 2022 to 2023″.

“This is an insurance cover that is covering all government officials in all government agencies, paramilitary and intelligence agencies.

“Council approved the total sum of N9.24 billion naira for the insurance cover for 2022 to 2023.

Investors King could recall that in June 2021, the Federal Government also approved N9.2 billion as a premium for insurance companies who will manage insurance coverage for federal civil servants for the year 2021-2022.

In addition, the Minister of Finance added that 2022 to 2023 insurance cover will take effect from the date of payment, noting that the insurance cover is 30 percent of the annual emolument of any dead staff of government. 

Section 4 (5), of the Pension Reform Act, 2014 maintained that “every employer shall maintain a group life insurance policy in favour of each employee for a minimum of three times the yearly total emolument of the employee”

“As you know, the insurance will take effect from the date of payment and in Nigeria, by our laws, the insurance cover is 30% of the annual emolument of any staff of government that is deceased.

“And this cover is paid by the insurance company to the beneficiaries of the deceased staff,” she said.