Deposit Money Banks and insurance companies are expected to rake in the sum of N22.6bn in bank charges and insurance premiums from Ministries, Departments and Agencies of the Federal Government in 2022, IgbereTV reports.
This was according to an analysis of data contained in the 2022 budget proposal of the MDAs submitted to the National Assembly for approval.
The amount may however be higher than the N22.6bn as certain government agencies such as the Nigerian Customs Service, Central Bank of Nigeria, Nigeria Railway Corporation, Securities Exchange Council, Nigerian Communications Commission and the Nigerian Investment Promotion Commission did not include their allocations for bank levies and insurance premiums.
A breakdown of the figure showed that the N22.6bn comprised N17.3bn projected for the payment of insurance premiums and N5.3bn for bank charges.
On the other hand, insurance premiums are funds paid to insurance companies to provide insurance policies for employees. These policies could cover healthcare, automobile, home, or life.
According to the budget document, the top 10 agencies with the highest allocations for insurance premiums are the Federal Inland Revenue Service, Federal Airports Authority of Nigeria, Nigerian Maritime Administration and Safety Agency, Nigeria Copyright Commission, Department of Petroleum Resources, National Agency for Food and Drug Administration and Control, Federal Mortgage Bank of Nigeria, Accident Insurance Bureau, National Youth Service Corps and Defence Mission.
NCC, NAFDAC and FMBN designated N885.5m, N633.06m and N548.81m respectively for insurance premiums in the 2022.
Meanwhile, Defence Mission, an agency under the Ministry of Defence allocated the sum of N437.7m for the payment of premiums.
National War Museum, National Gallery of Art, Bureau of Public Reforms, Defence Space Administration, Institute of Agricultural Research and training, Federal College of Fresh water and Fisheries, Nigerian National Medicine Development Agency, Directorate of Technical Cooperation in Africa and Foreign Mission, Kingston make up the top 10 agencies with the lowest budgets for insurance premiums.
Findings show that the National War Musuem allocated only N300,000 for the payment of insurance premiums in its 2022 budget proposal, while the National Gallery of Art designated the sum of N500,000.
BPR and DSA, allocated N500,000 and N402,000 respectively for premiums while IART will spend a total of 162,650 on insurance cover for its employees in 2022.
For the Federal College of Fresh water and Fisheries, the sum of N345,509 was earmarked for insurance premium out of a budget of N1.7bn budget. Meanwhile, the Directorate of Technical Cooperation in Africa allocated N400,000 for premiums payment in its 2022 budget.
NNMDA and Foreign Mission, Kingston allocated N14,768 and N4,734 respectively for insurance premiums, making them the agencies with the smallest insurance budgets.
A cursory look at the N5.3bn projected to be spent on bank charges shows that, the FIRS and National civil Aviation Authority will pay the bulk of the amount as the agencies earmarked N1.7bn and N1.4bn for bank charges in 2022.
