Emma Thompson
Mon, Sep 4, 2023 4:55 PMInsurance Companies Summoned by House of Representatives Over N267 Billion Debt
BusinessEarn Max 30 Coins💰 Get coins immediately after reading this article
The House of Representatives ad hoc committee on non-remittance to the National Housing Fund has summoned the CEOs of insurance companies to address their alleged N267 billion investment fund debt. The committee seeks to investigate the violation of the National Housing Fund Act, which mandates investment in real property development. Non-compliance from the insurance companies has raised concerns, prompting the committee to demand explanations and evidence of payments made to the Federal Mortgage Bank of Nigeria.
ABUJA, Nigeria -- In a bid to address an alleged N267 billion investment fund debt, the CEOs of various insurance companies have been summoned by the House of Representatives ad hoc committee on non-remittance to the National Housing Fund (NHF). This recent development stems from investigations surrounding a violation of the National Housing Fund Act.
The committee, which reconvened on August 30, 2023, in Abuja, emphasized the significance of adhering to Section 5(2) of the NHF Act. This section mandates that registered insurance companies invest a minimum of 20 percent of their non-life funds and 40 percent of their life funds in real property development. Furthermore, at least 50 percent of these investments should be paid into the Fund through the Federal Mortgage Bank of Nigeria (FMBN) at an interest rate not exceeding 4 percent.
According to the committee, insurance companies have failed to remit approximately N267 billion to the FMBN in 2019 alone, in contravention of their statutory obligation. The summons were issued to CEOs of insurance companies, as Chairman Dachung Bagos insisted on their personal appearance before the committee.
"We will not condone any disregard for parliamentary summons," stated Bagos. He demanded that the insurance companies provide a comprehensive explanation for their non-compliance with the NHF Act and furnish evidence of all amounts paid to the FMBN. Additionally, Bagos stressed the importance of the National Insurance Commission (NICON) providing proof of which companies were in default.
Chairman Bagos expressed grave concerns over the non-remittance of funds and highlighted that 54 insurance companies have been found to have not remitted N267 billion as of 2019 alone. He further noted that this figure does not even include data from the years 2020 to 2023.
Bagos assured that the 10th House of Representatives would decisively address this issue and warned that the CEOs of all concerned insurance companies must personally appear before the committee no later than next Tuesday.
This ongoing investigation shines a light on the need for strict adherence to statutory obligations and accountability within the insurance sector. As the hearings continue, it remains to be seen how the insurance companies will respond and what actions the House of Representatives will take to ensure compliance with the NHF Act.
Source of content: OOO News 2023-09-04 News
More detailed, more comprehensive, fresher news, please visit OOO NEWS.
