FG urged to dedicate 2% of budget to insurance

The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, has urged the federal government to dedicate two per cent of the annual budget to deepening insurance penetration.

Yusuf, who spoke at the 2022 Insurance Industry Consultative Council (IICC) media retreat in Ogun state, yesterday, said the insurance provisions for Ministries, Departments and Agencies (MDAs) to ensure government assets are too small, adding that some MDAs didn’t even have an insurance budget.

“These are public assets and commitment to insurance is critical. We have seen where government properties get burnt or destroyed and the properties abandoned,” because of lack of insurance.

“The federal government and states should dedicate a minimum of 2% of their total budget to insuring their assets. This will make a significant impact in the industry,” he said.

The chairman of IICC, Mr Edwin Igbiti, affirmed that the insurance industry is one of the most resilient and fast-expanding sectors in Nigeria.

Igbiti, who is also the president/chairman in Council, Chartered Insurance Institute of Nigeria (CIIN) said: “You will agree with me that there has been growth in the industry despite the numerous economic recessions, the effects of the COVID-19 and the #EndSARS protests which resulted into millions of claims.

“The insurance industry has stood as one of the most resilient and fast-expanding sectors in the nation’s economy.”