FG to pay N15bn premium on MDAs’ life insurance

The Federal Government has allocated N15bn to settle the
insurance premium of employees in its Ministries, Departments and
Agencies for the 2018 financial period.

The President, Chartered Insurance Institute of Nigeria, Mrs.
Funmi Babington-Ashaye, said this during the institute’s business
outlook seminar with the theme, ‘Economic policies of the
government in 2018: Issues, challenges and prospects for the
insurance industry,’ in Lagos.

She said, “Considering the fact that the government has
allocated N181.19bn to the payment of pensions and gratuities of
public servants, while N15bn has also been set aside to meet the
MDAs’ life assurance premium obligations, the insurance sector
should experience increased business momentum.

“On the whole, the insurance industry, in my view, has more to
cheer from the budget. In other words, the business outlook for the
insurance industry is mixed but very promising. As players and risk
managers, we need to open our inner minds and take those business
decisions that will help us to reposition the industry in the
unfolding 2018 business year.”

Babington-Ashaye noted that the 2018 budget of consolidation was
designed to build on the achievements of the 2017 fiscal year in
which Nigeria strategically exited economic recession.

To further spur economic activities, she said the government
planned to spend N8.61tn, while its expected revenue from all
sources was estimated to be N6.60tn, leaving a funding gap of
N2.01tn.

She observed that the 2018 budget was largely a deficit budget,
implying that the government would need to borrow from local and
international institutions to augment the expected shortfall in the
budget.

The Federal Government has allocated N15bn to settle the
insurance premium of employees in its Ministries, Departments and
Agencies for the 2018 financial period.

The President, Chartered Insurance Institute of Nigeria, Mrs.
Funmi Babington-Ashaye, said this during the institute’s business
outlook seminar with the theme, ‘Economic policies of the
government in 2018: Issues, challenges and prospects for the
insurance industry,’ in Lagos.

She said, “Considering the fact that the government has
allocated N181.19bn to the payment of pensions and gratuities of
public servants, while N15bn has also been set aside to meet the
MDAs’ life assurance premium obligations, the insurance sector
should experience increased business momentum.

“On the whole, the insurance industry, in my view, has more to
cheer from the budget. In other words, the business outlook for the
insurance industry is mixed but very promising. As players and risk
managers, we need to open our inner minds and take those business
decisions that will help us to reposition the industry in the
unfolding 2018 business year.”

Babington-Ashaye noted that the 2018 budget of consolidation was
designed to build on the achievements of the 2017 fiscal year in
which Nigeria strategically exited economic recession.

To further spur economic activities, she said the government
planned to spend N8.61tn, while its expected revenue from all
sources was estimated to be N6.60tn, leaving a funding gap of
N2.01tn.

She observed that the 2018 budget was largely a deficit budget,
implying that the government would need to borrow from local and
international institutions to augment the expected shortfall in the
budget.