The Federal Authorities has earmarked a major sum of N17,313,619,734 within the 2025 funds for the availability of Group Life assurance for workers of Ministries, Departments, and Businesses (MDAs), in addition to members of the Nationwide Youth Service Corps (NYSC).
The allocation consists of bills for administration and monitoring to make sure efficient implementation.
Group Life Assurance, a compulsory coverage in Nigeria below the Pension Reform Act 2014, requires employers in the private and non-private sectors to offer a minimal of 3 times an worker’s annual wage as a loss of life profit in case of an premature demise.
This initiative demonstrates the Federal Authorities’s dedication to the welfare of its workforce, providing a monetary cushion for beneficiaries of deceased workers.
The allocation will cowl workers throughout MDAs, together with important safety companies just like the Division of State Providers (DSS) and different public establishments. As well as, the coverage extends its advantages to NYSC members, demonstrating the federal government’s acknowledgment of their contributions to nationwide improvement.
The N17.3 billion allotted won’t solely fund the life assurance insurance policies but in addition cater to administrative and monitoring prices related to its administration. The inclusion of those prices suggests the federal government’s intent to make sure transparency and effectivity within the disbursement and utility of the funds.
Departure from 2024 allocations
In 2024, the federal authorities permitted N9.6 billion to insure lifetime of its employees.
- In keeping with the Minister of Info and Nationwide Orientation, Mohammed Idris, the President permitted about N9.6 billion for 12 native insurance coverage companies to cowl the federal employees in case of unexpected eventualities in the middle of their duties.
- He stated it was a standard annual cowl that insurance coverage firms give to employees. So, within the occasion of loss of life or extreme damage, they will resort to it in order that their households wouldn’t should endure.
“There are about 12 insurance coverage firms concerned. It’s a standard annual cowl that insurance coverage firms give employees. So, within the occasion of loss of life or extreme damage, they will resort to it in order that their households wouldn’t should endure,’’ he stated.
What you need to know
In keeping with the Workplace of the Head of the Civil Service of the Federation (OHCSF), the Federal Authorities appointed Insurance coverage Corporations and Brokers to offer insurance coverage protection to Federal Authorities workers from ninth February 2023 to eighth February 2024.
In 2022, the OHCSF, settled 648 backlogs of loss of life advantages to the households of deceased Officers within the 12 months 2022.F
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