The House of Representatives has declared its resolve to recover unremitted revenues from insurance companies found to have defaulted in remitting funds meant for the National Housing Fund (NHF), as part of efforts to improve the nation’s revenue generation.
The move followed revelations that several insurance firms failed to remit mandatory contributions running into hundreds of billions of naira, in violation of the Federal Mortgage Bank of Nigeria (FMBN) Act.
Speaking at a session of the House ad hoc committee investigating the non-remittance of workers’ NHF contributions by insurance firms, the committee chairman, Hon. Dachung Bagos, disclosed that over N267 billion was unremitted in 2019 alone, excluding subsequent years.
He explained that under the law, insurance companies are required to invest 20 percent of their non-life insurance and 40 percent of their life insurance funds into the NHF. However, a large number of firms have failed to comply, depriving the government of critical funds for housing development.
“We are determined to trace every kobo. This is a clear economic sabotage and the House will take appropriate legislative action to recover the funds,” Bagos said.
he committee has summoned the Chief Executive Officers of 54 insurance companies to appear and explain their failure to remit the statutory funds. Lawmakers warned that failure to comply with the summons could result in sanctions, including public disclosure of defaulters and potential legal consequences.
Hon. Kama Nkemkanma insisted that company heads must appear in person, not through representatives, while Hon. Timilehin Adelegbe called for the publication of the names of erring firms to ensure transparency and accountability.
The committee has also directed the National Insurance Commission (NAICOM) to provide a comprehensive report on compliant and defaulting firms, including details of any regulatory sanctions previously imposed.
The lawmakers emphasized that the recovery of these unremitted funds is crucial not only for boosting national revenue but also for funding affordable housing for Nigerians.
Leave a Reply