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.As regulatory commission projects N14.96 billion IGR, allocates bulk to recurrent expenditure
ABUJA – The House of Representatives Committee on Insurance and Actuarial Matters has approved the 2024 budget performance report and the 2025 budget estimates of the National Insurance Commission (NAICOM) and the Nigeria Deposit Insurance Corporation (NDIC).
The approvals followed separate presentations by the Commissioner for Insurance, Olusegun Ayo, and the Managing Director of NDIC, Bello Hassan, during a budget defense session held on Monday.
The budget defense provided an opportunity for both agencies to outline their financial performance for the current year and justify their proposed expenditures for the coming year.
Speaking earlier, the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has stated that the agency is self-funded.
Speaking before the Committee, Hassan explained, “Our operations are financed through premiums collected from participating financial institutions. These premiums are invested in government securities as stipulated by law, and the proceeds are used to fund our activities. Any surplus is duly remitted to the Consolidated Revenue Fund in compliance with the Fiscal Responsibility Act.”
While presenting an overview of the Nigeria Deposit Insurance Corporation’s (NDIC) 2024 budget performance, he stated that the report was based on figures as of September 2024.
“We have the figures up to December,” he explained. “However, when the request was made, we were asked to submit the management accounts as of September 2024. That is why these numbers are based on that period.”
Speaking on the corporation’s 2025 budget estimates, he revealed that NDIC projects a gross income of N433.9 billion before target funding.
Hassan stated, “After deducting targeted funding of N73.9 billion, we anticipate a total revenue of N360.1 billion in 2025. In line with the Fiscal Responsibility Act and the circular issued by the Honorable Minister, 50 percent of this income is expected to be remitted to the Consolidated Revenue Fund.”
Meanwhile, in his presentation, the Commissioner for Insurance at the National Insurance Commission (NAICOM), Olusegun Ayi, revealed that the Commission has proposed a budget estimate of N29.931 billion for the 2025 fiscal year.
Breaking down the revenue sources, Ayi explained, “The first major source is the Insurance Levy, which is projected to generate N17.6 billion. Additionally, fees and penalties are expected to contribute N12.3 billion, bringing the total projected revenue to N29.9 billion.”
A regulatory commission projected an internally generated revenue (IGR) of N14.96 billion for its operations, following an automatic 50% deduction into the Consolidated Revenue Fund (CRF), a senior official disclosed during a budget presentation.
Addressing lawmakers, the official stated that the commission’s total projected expenditure stands at N14.906 billion, comprising N13.03 billion for recurrent costs and N1.873 billion for capital projects.
“In crafting this budget, we have maintained a modest yet ambitious approach to ensure effective regulation of the sector while contributing meaningfully to Nigeria’s economic growth,” he noted.
He emphasized the commission’s commitment to sustaining its role in driving sectoral efficiency and providing essential regulatory support to the national economy.
The heads of two key agencies have appealed to the House of Representatives Committee for the swift passage of the Insurance Reform Bill 2024, currently before the National Assembly.
The Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM) emphasized the urgent need for enhanced regulatory powers to strengthen the industry.
“We need the full backing of the law,” he stated. “Currently, the regulator operates with limited enforcement powers under existing legislation. However, the proposed Insurance Reform Bill 2024, now before the House of Representatives, seeks to address these gaps. Your committee has played a crucial role in shaping this bill, and we are optimistic about its passage.”
He further expressed confidence in the committee’s ability to prioritize the bill, stressing its potential to bolster the insurance sector’s contribution to Nigeria’s economic growth.
“With your kind permission, I would like to say that we trust in this committee’s capacity to deliver. Strengthening the regulatory framework will position the insurance sector as a focal driver of economic development, enabling it to make a significant impact on national growth.”
“It’s about creating the right enabling environment, which depends on our ability to put together a comprehensive set of laws, both forward-thinking and capable of addressing present challenges.”
Following the presentations, the Committee, chaired by Hon. Ahmed Jaha Babawo, moved a motion for the adoption of the 2025 budget proposals for the Nigeria Deposit Insurance Corporation (NDIC) and the National Insurance Commission (NAICOM). The motion was passed through a voice vote.
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