By David Okoh
ABUJA – The House of Representatives Committee on Insurance and Actuarial Matters has approved the 2024 budget performance and the 2025 budget estimates of the National Insurance Commission (NICOM) and the Nigeria Deposit Insurance Corporation (NDIC).
The approval followed presentations by the Commissioner for Insurance, Olusegun Ayi, and the Managing Director of NDIC, Bello Hassan, during a budget defense session held by the committee on Monday.
Speaking before the committee, NDIC MD Bello Hassan emphasized that the corporation operates as a self-funding agency.
“We fund our operations from the premiums we receive 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. The surplus is remitted to the Consolidated Revenue Fund in line with the Fiscal Responsibilities Act,” Hassan explained.
Providing insights into NDIC’s 2024 budget performance, he noted that the figures presented were as of September 2024.
“We have the figures as of December, but we were asked to submit the management accounts as of September 2024,” he added.
For 2025, Hassan disclosed that NDIC anticipates generating a gross income of N433.9 billion before target funding.
“When you deduct the target funding of N73.9 billion, we expect a total income of N360.1 billion in 2025. Fifty percent of this income will be remitted to the Consolidated Revenue Fund in line with the Fiscal Responsibility Act and directives from the Honourable Minister,” he stated.
In his presentation, NAICOM’s Commissioner for Insurance, Olusegun Ayi, revealed that the commission has proposed a N29.931 billion budget for the 2025 fiscal year.
“This is broken down into two major revenue sources. The Insurance Levy is projected at N17.6 billion, while fees and penalties are estimated at N12.3 billion, bringing the total to N29.9 billion,” Ayi explained.
He added that 50 percent of the total revenue would be automatically deducted and remitted to the Consolidated Revenue Fund, leaving N14.96 billion as the commission’s internally generated revenue for operations.
“On the expenditure side, we have a total projected spending of N14.906 billion, comprising N13.03 billion for recurrent expenses and N1.873 billion for capital expenditure. Despite this modest budget, we intend to regulate the sector effectively and drive positive change,” he assured.
Both agency heads appealed to the committee for the swift passage of the Insurance Reform Bill 2024, currently before the National Assembly.
NICOM’s Commissioner stressed the need for expanded regulatory powers.
“The regulator has limited powers under existing laws. The proposed reform bill will enhance our authority and enable us to make a significant impact on the Nigerian economy. We rely on this committee’s support to ensure its swift passage,” Ayi stated.
Following the presentations, the committee, chaired by Hon. Ahmed Jaha Babawo, adopted the 2025 budget proposals of both NDIC and NAICOM through a voice vote.
