…as agencies push for approval of insurance reform bill
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By Gloria Ikibah
The House of Representatives has given the green light to the 2024 budget performance review and 2025 financial proposals of the National Insurance Commission (NICOM) and the Nigeria Deposit Insurance Corporation (NDIC).
The approval came after separate presentations by the Commissioner for Insurance, Olusegun Ayi, and NDIC Managing Director, Bello Hassan, during a budget defense session witg the House Committee on Insurance and Actuarial Matters held on Monday in Abuja.
While addressing the committee, Bello Hassan emphasized that NDIC operates as a self-sustaining agency.
He said, “We fund out operations from the premiums we received from participating financial institutions. This premium is invested in government securities as provided in the act and the proceeds are used to finance our activities and the surplus is remitted to the Consolidated Revenue Fund in line with the provisions of Fiscal Responsibilities Act”.
Hassan also hihighlighted NDIC’s 2024 budget performance, and he said it was as at September 2024.
He added,” We have the figures as at December, but when the request comes, we were asked to submit the management accounts as at September 2024. So that’s why these numbers are as at September 2024″.
Presenting the 2025 budget estimate, he said, the NDIC intends to generate a gross income of N433.9 billion, before target funding.
Hassan added, “And when you less target funding of N73.9 billion, we expect to realize a total income of N360.1 billion in the year 2025. 50 percent of this income is supposed to go to the Consolidated Revenue Fund in line with the Fiscal Responsibility Act annd the circular issued by the Honorable Minister”.
In his presentation, the NAICOM’s Commissioner for Insurance, Olusegun Ayi informed that, the Commission has a budget estimate of N29.931 billion for the 2025 fiscal year.
He said, “And this is broken down into two major sources of revenue, the first being the Insurance Levy. The Insurance Levy is projected to be N17.6 billion, while fees and penalties is projected to be N12.3 billion, giving a total of N29.9 billion.
“But out of this, Mr Chairman, 50% will be going to the consolidated revenue fund by way of auto deduction. The balance is a N14.96 billion, which will be the available total IGR for the commission to operate. I will not make too much comment in this regard, but I will jump to the expenditure side.
“On the expenditure side, Mr Chairman, we have a gross total expenditure of N14.906 billion, which again is broken down into recurrent expenditure of N13.03 billion, and a capital expenditure of N1.873 billion. In this regard, I think there have been some ambition on the part of the commission.
“Because we intend to be able to within this very modest budget, be able to carry out effectively the business of regulating the sector and be able to make the desired difference. We desire to be that sector that will continue to give the needed, so called, the needed backing to the Nigerian economy”.
The two heads of the agencies pleaded with the Committee for a speedy passage of the Insurance Reform Bill 2024 which is before the National Assembly.
The NICOM Boss said, “We need the powers of the law. Currently, the regulator is designed as a regulator, but giving only a voice in terms of biting that are limited powers that have been granted in the existing laws. And to this extent, you have been an integral part of the process that has put up the …new insurance bill, which is the 2024 Insurance reform bill currently before the House of Representatives.
“With your kind permission, I would like to also say that we are trusting in the ability of this committee to effectively deliver and make us that focal attention for our national economy, in terms of being able to effectively contribute to the growth and development of the Nigerian economy, insurance is set.
“It’s just the enabling environment, and that can only be to the extent that we’re able to put together a bundle of laws, not only futuristic, but can address current challenges”.
The Committee adopt the 2025 budget proposals by the NDIC and NAICOM.
