A Review of the Nigerian Energy Industry

Lawmakers summon NNPC top executives over $329m insurance

11 July 2012, Sweetcrude, ABUJA – THE management of the Nigerian National Petroleum Corporation (NNPC) has been summoned by the House of Representatives for explanations on alleged inflation of insurance premuim claims, paid to local insurance firms.

The House members are asking questions over the $329.4 million premium local insurance firms managing NNPC portfolio had filed claims for, between 2007 and 2011, but which was later inflated to over $317.4 million.
This is one of the discoveries at the current investigative public hearing on the insurance of government assets and property at the House.

The investigators also found that insurance claims totalling $12 milion, which was due to the NNPC between 2007 to 2011, were still outstanding.

Chairman of the House Committee on Finance, Abdulmumin Jubrin, who issued the summon to the NNPC management, said the move was not aimed at witchhunting anyone, but was aimed at resolving issues relating to insurance and the government.

“This is an area that no one seems to take interest in and in my opinion, it could be an avenue for corruption.The govenment makes provision for insurance claims yearly, but there is nothing to show for it. Most MDAs do not even bother to subscribe to it,” he said.

He further said: “We are looking at a situation where we can have an insurance office that would co-ordinate insurance profiles of MDAs so that whatever fact or document is required of any MDA would not require going to individual agencies.

“As we have it today, I don’t think anyone can authoritatively or assertively tell Nigerians the correct positions of insurance premium on government property. That is not encouraging at all. But we are determined to chart a new course on this matter.”

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