Executive Secretary of the National Health Insurance Scheme, Prof. Usman Yusuf and the NHIS Governing Council, may have been in a fresh row over a N30billion federal government bonds.
Before now, the agency had also approved a proposal to invest N25billion of its residual funds in “treasury bills and spread across maturities,” with Cowry Asset Management Limited as its managers.
“This treasury bill strategy would ensure that funds are not unduly idle but earns market returns to grow the reserves and cater for the scheme’s growing financial burden,” the asset company advised in a letter addressed to the ES and dated March 1, 2018.
Yusuf was suspended last year by the Minister of Health, Professor Isaac Adewole over alleged corruption and nepotism, but recalled on the order of President Muhammadu Buhari.
But on the strength of his presentation to the council at its second regular meeting on April 25, 2018, the council approved the placement of N30billion in federal government’s securities with no commission payable to a third party.
The NHIS boss predicated his position on a letter with Ref Nos: HMH/ABJ/032/X/465 and dated August 18, 2017, where the minister reportedly gave his nod that such investment be made.
He similarly backed up his position before the council, with the provision of Section 11(4) of the NHIS Act No. 35, 1999, which gives legal backing for such investments.
The section reads: “The scheme shall invest any money not immediately required by it in federal government securities or in such other securities” as the council may deem fit in line “with the approval of the minister from time to time..”
The minister had given an approval for the scheme to the then acting Executive Secretary, Attahiru A. Ibrahim.
The letter, dated August 18. 2017, read in part: “Following from above and in order to arrest the value erosion of the NHIS funds, I hereby approve as follows: 1) Commence effective immediately, starting with the sum of N10billion up to the tune of N50billion investments in Federal Government Securities at prevailing market determined yields; 2) Engage the services of the regulatory bodies certified investment counter parties….”
However, in a counter letter dated August 29, 2017, about ten days after the earlier one, the minister reversed his directive.
The letter, also addressed to Ibrahim, quoted his finance counterpart, Kemi Adeosun, as advising “against the proposal to invest NHIS residual funds in securities.”
The approval of such investment, Adewole contended, “will be an indirect violation of the Government’s Treasury Single Account (TSA) policy.”
“In view of the above, the Central Bank of Nigeria (CBN) has been advised to pay Treasury Bill rates on any residual balance held in the TSA with CBN for investment Trusts.
“You are therefore directed to stop all actions and processes on the investment of NHIS residual funds in securities with immediate effect and approach CBN to facilitate the payment of interest on residual funds,” the letter directed.
A source within the agency told our reporter that Yusuf’s action might not be unconnected to the recommendation made by the House of Representatives committee during its oversight visit to the agency.
The source, however, added that the committee’s recommendation was turned down by the then acting executive secretary, who cited the directive from the health minister in his letter of August 29.
“This is giving the council some concern, considering the fact that it was not privy to the letter of reversal from the minister. As I am talking to you, the ES has been asked by the council to explain his actions. I am not aware if he has formally responded.
Although our reporter could not reach Yusuf for a reaction, another source within the agency hinted that “his actions were done in good faith, irrespective of the ministerial directive or otherwise.”
When Blueprint sought for some clarifications from the council’s chair, Dr. Enyantu Ifenne, she insisted on seeing our reporter at her Games Village residence and supporting documents. She said: “It is important to know what I am speaking on and who I am speaking to. Not until I have those documents, I won’t be able to make any comment.”
But the medium said it was unprofessional to disclose story source, and at that point she said there was nothing she could do.
