Business FG to Cease Budgetary Allocations to NAICOM

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From next year, the federal government would stop budgetary allocations to the National Insurance Commission (NAICOM). NAICOM is expected to evolve innovative ways of boosting its Internally Generated Revenue (IGR).

According to THIS DAY LIVE, the government expressed regret over the low insurance penetration in the country, and called for a reversal to enable the insurance industry play a more effective and prominent role in the economy.

Dr. Yerima Ngama, Minister of State for Finance who spoke at the inauguration of the newly constituted 11-member board of NAICOM in Abuja yesterday, described insurance as a very big business, advising the new board to be firm and unyielding to any form of pressure in turning the industry around.

Ngama said a lot was expected from the board, assuring that the federal government was strengthening the legal framework to make the regulatory body more effective and responsive to the needs of the economy.

He said with the law, “the regulator can bark and bite,” urging the board to help the government put the law in place.

Dr. Ngozi Okonjo-Iweala,Minister for the Economy and Minister of Finance, who inaugurated the board, regretted that due to low financial capacity, the nation’s insurance industry had yielded ground to offshore insurers.

Okonjo-Iweala stated that the insurance industry played an important role in the capital market as well as the nation’s financial sector, and reminded the 11-member board chaired by a former Deputy Speaker of the House of Representatives, Mr. Chibudom Nwuche, that expectations from them were “very substantial”.

Responding on behalf of the board, Nwuche promised that a careful study of the industry would be undertaken, assuring that a visible difference would be noticed in the industry soon.
 
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