2025 Budget: FG allocates N17.3 billion for Group Life Assurance cover for MDAs, Corpers, others

The allocation includes expenses for administration and monitoring to ensure effective implementation.

Group Life Assurance, a mandatory policy in Nigeria under the Pension Reform Act 2014, requires employers in the public and private sectors to provide a minimum of three times an employee’s annual salary as a death benefit in case of an untimely demise.

This initiative demonstrates the Federal Government’s commitment to the welfare of its workforce, offering a financial cushion for beneficiaries of deceased employees.

The allocation will cover staff across MDAs, including critical security agencies like the Department of State Services (DSS) and other public institutions. In addition, the policy extends its benefits to NYSC members, demonstrating the government’s acknowledgment of their contributions to national development.

The N17.3 billion allocated will not only fund the life assurance policies but also cater to administrative and monitoring costs associated with its management. The inclusion of these costs suggests the government’s intent to ensure transparency and efficiency in the disbursement and application of the funds.

In 2024, the federal government approved N9.6 billion to insure life of its workers.

“There are about 12 insurance companies involved. It’s a normal annual cover that insurance companies give workers. So, in the event of death or severe injury, they can resort to it so that their families would not have to suffer,’’ he said.

According to the Office of the Head of the Civil Service of the Federation (OHCSF), the Federal Government appointed Insurance Companies and Brokers to provide insurance coverage to Federal Government employees from 9th February 2023 to 8th February 2024.

In 2022, the OHCSF, settled 648 backlogs of death benefits to the families of deceased Officers in the year 2022.F