By NIyi JACOBS
The Federal Government has allocated N17.3 billion in the 2025 budget to provide Group Life Assurance for employees of Ministries, Departments, and Agencies (MDAs), as well as members of the National Youth Service Corps (NYSC). This allocation also includes provisions for administration and monitoring costs to ensure effective implementation of the program.
Group Life Assurance, mandated under Nigeria’s Pension Reform Act of 2014, requires employers in both public and private sectors to provide death benefits equivalent to at least three times an employee’s annual salary in the event of an untimely death. This policy extends not only to civil servants but also to critical security agencies like the Department of State Services (DSS) and other public institutions.
The N17.3 billion budget will support the life assurance policies and cover the administrative expenses involved, reflecting the government’s commitment to ensuring transparency and efficient fund management. This initiative aims to provide a financial safety net for the families of deceased employees.
In comparison, the 2024 budget earmarked N9.6 billion for Group Life Assurance, a notable increase in the 2025 allocation. The previous year’s allocation was intended to cover federal workers against unforeseen circumstances, ensuring that their families are financially supported in case of death or severe injury. The Minister of Information and National Orientation, Mohammed Idris, emphasized that this is a routine annual cover provided by insurance companies for workers.
The Office of the Head of the Civil Service of the Federation (OHCSF) also revealed that it has been working with insurance companies and brokers to provide coverage for federal employees, including settling 648 backlogs of death benefits for the families of deceased officers in 2022. The new allocation further strengthens the government’s focus on the welfare of its workforce, including those serving in the NYSC.
