By Chukwudi Obasi, Abuja
The House of Representatives Committee on Insurance and Actuarial Matters has approved the National Insurance Commission (NAICOM) and the Nigeria Deposit Insurance Corporation (NDIC) ‘s 2024 budget performance review and 2025 budget estimates.
The decision followed presentations by the Commissioner for Insurance, Olusegun Ayi, and the Managing Director of NDIC, Bello Hassan, during a budget defence session held by the committee yesterday.
In his presentation, NDIC’s MD, Bello Hassan, emphasised that the corporation operates as a self-funding entity.
“We finance our operations through premiums collected from participating financial institutions. These funds are invested in government securities as stipulated by law, and the proceeds are used to sustain our activities. Any surplus is remitted to the Consolidated Revenue Fund in line with the Fiscal Responsibility Act,” he explained.
Highlighting the NDIC’s 2024 budget performance, Hassan noted that the figures presented were as of September 2024.
“We have data up to December, but we were required to submit management accounts as of September 2024, which is why these figures reflect that period,” he clarified.
Regarding the 2025 budget, Hassan stated that the NDIC expects to generate a gross income of ₦433.9bn before deducting target funding.
“After deducting target funding of ₦73.9bn, we anticipate a total income of ₦360.1bn in 2025. By the Fiscal Responsibility Act and a directive from the Honourable Minister, 50 percent of this income will be remitted to the Consolidated Revenue Fund,” he added.
Presenting NAICOM’s financial outlook, Commissioner for Insurance Olusegun Ayi disclosed that the agency’s 2025 budget is estimated at ₦29.931bn.
“This revenue is derived from two primary sources: the Insurance Levy, projected at ₦17.6bn, and fees and penalties, expected to generate ₦12.3bn, bringing the total to ₦29.9bn,” he said.
However, he pointed out that 50 percent of this revenue will be automatically deducted and remitted to the Consolidated Revenue Fund, leaving NAICOM with ₦14.96bn as internally generated revenue (IGR) for operations.
On the expenditure side, Ayi stated that the agency has a total expenditure estimate of ₦14.906bn, which includes recurrent expenditure of ₦13.03bn and capital expenditure of ₦1.873bn
Acknowledging the modest budget, Ayi said, “Despite financial constraints, we are determined to effectively regulate the sector and contribute meaningfully to the Nigerian economy. We aim to strengthen the insurance industry and enhance its impact on national development.”
*Agencies push for passage of Insurance Reform Bill 2024
NDIC and NAICOM appealed to the committee for the swift passage of the Insurance Reform Bill 2024, which is before the National Assembly.
Ayi stressed the need for stronger regulatory powers, stating, “NAICOM is designed to regulate the insurance sector but lacks the authority to enforce compliance effectively. The existing laws grant us limited powers, which is why the new Insurance Reform Bill is essential.”
He urged lawmakers to expedite the legislative process, adding, “With your support, we can create an enabling environment for the insurance sector to thrive. A modernized legal framework will help us address existing challenges and position the industry for future growth.”
Following the presentations, Committee Chairman Ahmed Jaha Babawo conducted a voice vote, after which the panel formally approved the 2025 budget estimates for NDIC and NAICOM.
