House C’ttee commends NDIC on budget implementation

The Managing Director/Chief Executive (MD/CE) of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has successfully defended the Corporation’s proposed 2017 budget before the House Committee on Insurance and Actuarial Matters as part of its oversight function.

The MD/CE began by calling the attention of the Honourable members to the delay in the approval of 2016 budget which contributed to the modest execution of the budget. He restated the Corporations commitment to performance based budgeting system (PBBS) the essence of which is was to ensure efficient allocation of resources to enable the Corporation achieve its strategic mandate. In his presentation, Alhaji Umaru Ibrahim stated that in 2016, the Corporations actual income (net of provisions) was N85.020 billion which was expendable to the limit of 75% in line with the provisions of Fiscal Responsibility Act (FRA) 2007 while its total expenses was N31.551 billion.

This gave a net operating surplus of N53.469 billion out of which the Corporation made provision to transfer the sum of N42.775 billion or 80% into Consolidated Revenue Fund (CRF). As at date (Feb 2017), the Corporation had made a total transfer of N35.893 billion into CRF while awaiting the conclusion of its 2016 External Audit report before transferring the outstanding balance of N6.882 billion to the CRF in line with FRA 2007. With this the Corporation had surpassed its budgeted sum of N35.893 billion as against the actual sum of N42.775 billion transferred into CRF.

He urged the House Committee to approve the Corporation’s 2017 proposed budget of total income of N102.294 billion and expendable income of N76.720 billion. This comprised Operating expenses of N43.227 billion or 49.94%of total expenditure and a total Capital expenditure is N43.323 billion or 50.06% of the total budget. The Capital expenditure would be funded by the Corporation’s General Reserve Fund which stood at N45.670 billion as at 31st December, 2016. He concluded that a total of N47.254 billion is proposed as 80% net Operating surplus to be transferred into CRF in 2017. Members of the Committee expressed their satisfaction with the level of execution of the Corporation’s 2016 Budget and its proposed 2017 Budget especially its commendable efforts by consistently contributing to the Consolidated Revenue Fund of the Federation and urged the Corporation to remain steadfast.