Trapped N138bn: Minister stops investment of more funds by NHIS

Finance Minister Kemi Adeosun, has stopped the National Health Insurance Scheme (NHIS) from investing about N25billion.

National Daily gathered that the Acting Executive Secretary of the NHIS, Attahiru Ibrahim, had presented an approval given to his predecessor to invest the cash but the boss was in possession of a follow-up memo from the minister stopping the investment.

But with over N138billion NHIS cash trapped in 17 banks and financial companies as well as in individuals’ pockets from January 2011 to date, the Federal Government is not disposed to such an investment.

Although the investment was initially approved for the former Acting Executive Secretary, Attahiru Ibrahim, by the Minister of Health, Prof. Isaac Adewole, in line with Part IV, Section 11.4 of the National Health Insurance Act, it was reversed.

Following advice from the Minister of Finance, the decision to stop the investment was communicated to the NHIS by the Minister of Health.

In a memo, the Minister of Finance said the Central Bank of Nigeria (CBN) had been advised to pay Treasury Bill rates on any residual funds in the TSA with the apex bank.

In a follow-up letter to NHIS, the Minister of Health said: “This is to inform you that the Honorable Minster of Finance has advised against the proposal to invest NHIS residual funds in securities. The approval of such investment, she stated, will be an indirect violation of the Government’s Treasury Single Accounts (TSA) policy.

Meanwhile, National Daily gathered that the NHIS boss is banking on the initial approval given to the former Acting ES, Attahiru Ibrahim, by the Minister of Health. He is also relying on Section 11(3) of the NHIS Act to push for the investment of the funds.