By Mercy Aikoye
The House of Representatives Committee on Insurance and Actuarial Matters has adopted the 2024 budget performance and 2025 budget estimates of the National Insurance Commission (NICOM) and the Nigeria Deposit Insurance Corporation (NDIC). This decision was made after presentations by the Commissioner for Insurance, Olusegun Ayi, and the Managing Director of NDIC, Bello Hassan.
Bello Hassan informed the Committee that NDIC is a self-funding agency, generating revenue from premiums received from participating financial institutions. These premiums are invested in government securities, with the proceeds used to finance NDIC’s activities and surplus remitted to the Consolidated Revenue Fund.
NDIC’s 2024 budget performance was presented, with figures available up to September 2024. Hassan explained that the request for management accounts was submitted as at September 2024, although figures up to December 2024 are available. The 2025 budget estimate projects a gross income of N433.9 billion, with N360.1 billion expected after target funding deductions.
The National Insurance Commission (NAICOM) presented a budget estimate of N29.931 billion for the 2025 fiscal year. Commissioner Olusegun Ayi broke down the revenue sources into Insurance Levy (N17.6 billion) and fees and penalties (N12.3 billion). However, 50% of the revenue will be deducted and remitted to the Consolidated Revenue Fund.
The Commission’s expenditure for 2025 is estimated at N14.906 billion, comprising recurrent expenditure (N13.03 billion) and capital expenditure (N1.873 billion). Ayi expressed optimism that the Commission will effectively regulate the sector and contribute to Nigeria’s economic growth.
The two agencies pleaded with the Committee for a speedy passage of the Insurance Reform Bill 2024, currently before the National Assembly. The NICOM Boss emphasized the need for the powers of the law to effectively regulate the sector.
The Insurance Reform Bill 2024 aims to provide the necessary legal framework for the insurance sector. The Committee’s Chairman, Ahmed Jaha Babawo, moved a motion for the adoption of the 2025 budget proposals by NDIC and NAICOM, which was approved after a voice vote.
The adoption of the budget estimates marks a significant step forward for the insurance sector in Nigeria. The Committee’s approval will facilitate the implementation of the budget proposals and support the growth and development of the sector.
