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Nigerian banks, insurance firms to make N22.6bn from govt agencies in 2022

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Banks and Insurance firms in Nigeria are expected to collect over N22.6 billion from Ministries, Departments, and Agencies of the Federal Government in 2022.

This is according to the analysis of the 2022 budget currently with the National Assembly.

The breakdown shows N17.3 billion was projected for payment of insurance premiums and N5.3 billion for bank charges.

However, the amount could be higher as a number of government agencies did not include their projected spendings for bank charges and insurance premiums in their budget proposal.

From the budget, FIRS set aside the sum of N1.45bn for the payment insurance premiums, FAAN allocated N1.5bn while NIMASA earmarked the sum of N1.3bn.

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 Arts 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.

Read also: Nigerian banks release names, BVN of customers using lies to buy dollar cheaply

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.

Other agencies with high budgetary allocations for bank charges include the Bank of Agriculture, Nigerian Port Authority, Nigerian Postal Service, Federal Road Safety Corps, FAAN, FMBN, the now defunct DPR and the office of the National Security Adviser.

The budget also showed that BOA budgeted the sum of N460.3m for bank charges, NPA earmarked N250.5m while NIPOST allocated N208.6m.

The FRSC set aside the sum of N74.7m, FMBN allocated N31.9m, FAAN earmarked N30m while NSA and DPR projected to spend N57m and N75m on bank charges, respectively.

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