The 2025 appropriation bill presented by President Bola Tinubu reveals a substantial allocation for insurance premiums across various government ministries, departments, and agencies (MDAs). A meticulous analysis of the budget estimates indicates a planned expenditure of approximately N1.41 billion towards insurance coverage, encompassing a diverse range of policies from health and life insurance to asset protection. This proactive approach to risk management underscores the government’s commitment to safeguarding its personnel, infrastructure, and operations against unforeseen circumstances.
The National Youth Service Corps (NYSC) leads the pack with the largest insurance premium allocation, earmarking a significant N1.25 billion for coverage. This substantial sum likely reflects the organization’s responsibility for the welfare of thousands of youth corps members deployed across the nation. Other MDAs with notable insurance provisions include the Ministry of Youth Development Headquarters (N10 million), the Ministry of Environment Headquarters (N9 million), and the Office of the Senior Special Assistant to the President on MDGs (N3 million). These allocations, while smaller than the NYSC’s, demonstrate a widespread recognition of the importance of insurance across different sectors of government.
Further examination of the budget reveals allocations for several agencies dedicated to social welfare and national security. The National Senior Citizen Centre, National Commission for Persons with Disability, National Agency for the Prohibition of Trafficking in Persons, National Biosafety Management Agency Headquarters, and the National Oil Spill Detection and Response Agency have all budgeted for insurance premiums ranging from N3.5 million to N28 million. These provisions highlight the government’s commitment to mitigating risks associated with these crucial areas of public service. The diverse nature of these agencies underscores the broad application of insurance as a risk management tool.
The preservation of Nigeria’s natural heritage is also reflected in the insurance allocations for national parks. Gashaka Gumti National Park, Kainji National Park, and the Forestry Research Institute of Ibadan have all allocated funds for insurance premiums, totaling over N11 million combined. This demonstrates a commitment to protecting these valuable ecological assets against potential threats such as natural disasters or accidents. Furthermore, specific provisions have been made for insuring National Park Service vehicles (N60 million) and buildings (N50 million), further emphasizing the government’s focus on comprehensive risk management.
The health sector receives significant attention in the proposed budget, with allocations for insurance premiums at various healthcare institutions. The National Hospital, National Institute for Cancer Research and Treatment, and the Federal Medical Centre Wase in Plateau State have budgeted N10 million, N20 million, and N30 million, respectively. These allocations likely cover professional liability insurance, protecting healthcare professionals and institutions from potential legal claims arising from medical malpractice. This prioritization of insurance within the health sector reflects the government’s understanding of the inherent risks associated with medical practice.
The overall budget framework, themed ‘Budget of Restoration: Securing Peace, Rebuilding Prosperity,’ outlines a total expenditure of N49.7 trillion, with a projected revenue of N36.35 trillion. The resulting fiscal deficit of N13.39 trillion is planned to be financed through various means, including domestic and external borrowings and public-private partnerships. The inclusion of substantial insurance premiums within this broader budgetary context demonstrates the government’s strategic approach to risk management, aiming to protect its investments and ensure the continuity of essential services. This commitment to insurance reflects a proactive approach to safeguarding public resources and mitigating potential financial losses arising from unforeseen events.
