2025 Budget: FG Allocates N17.3 Billion for Group Life Assurance Cover for MDAs, Corpers, and Others

The Federal Government of Nigeria has allocated a substantial sum of N17,313,619,734 in the 2025 budget for the provision of Group Life Assurance coverage for employees of Ministries, Departments, and Agencies (MDAs), as well as members of the National Youth Service Corps (NYSC).

This allocation includes funds for both the insurance coverage itself and the administrative and monitoring costs to ensure effective implementation of the policy.

Group Life Assurance is a mandatory policy in Nigeria under the Pension Reform Act of 2014. The policy mandates employers in both the public and private sectors to provide a death benefit of at least three times an employee’s annual salary in the event of their untimely demise.

The government’s allocation of N17.3 billion highlights its commitment to the welfare of its workforce, offering a financial cushion for the families of deceased employees. This coverage will extend across all MDAs, including critical security agencies like the Department of State Services (DSS), as well as other public institutions. Furthermore, the policy will also cover NYSC members, reflecting the government’s recognition of their contributions to national development.

The N17.3 billion allocated will not only fund the life assurance policies but will also cover the administrative and monitoring costs associated with managing the policy. This inclusion of operational costs underscores the government’s desire for transparency and efficiency in the disbursement and application of the funds.

A Departure from 2024 Allocations

In 2024, the Federal Government approved N9.6 billion for the insurance coverage of its workers. According to the Minister of Information and National Orientation, Mohammed Idris, the sum was allocated to 12 local insurance firms to cover federal workers in case of unforeseen events, such as death or severe injury. The Minister emphasized that this was a standard annual policy that insurance companies offer to workers, ensuring that the families of workers are not left to suffer in the event of tragedy.

According to the Office of the Head of the Civil Service of the Federation (OHCSF), the Federal Government had previously appointed insurance companies and brokers to provide coverage to federal government employees from February 9, 2023, to February 8, 2024. In 2022, the OHCSF resolved 648 backlogged death benefits to the families of deceased officers.