Insurers call for proper monitoring, implementation of 2021 budget

As President Muhamnadu Buhari Signed the N13.6 trillion 2021 budget into law yesterday, Nigerians including insurance underwriters are calling for proper monitoring and implementation of the budget.

Some insurance industry operators who spoke to our correspondent on what the industry stands to benefit from the budget, called on the authorities to put necessary mechanisms in place to ensure proper monitoring and implementation of the budget.

While some said the passage of the budget early will allow the budget implementation circle to start from January to December, others said the time of budget implementation does not matter but what matters is the provision in the budget for the common man in terms of education, healthcare, housing, security amongst others.

The Managing Director, Law Union & Rock Insurance, Mr. Ademayowa Adeduro, while commenting on the budget in a telephone conversation with our correspondent, said passing the budget early by this present administration is commendable, adding that the early passage of the budget, gives hope that the budget implementation will start in earnest in order to help the country in its economic recovery.

Adeduro said the about 33% allocation for capital expenditures is grossly inadequate, noting that as insurer he would have preferred that more allocation was given to capital expenditures than recurrent.

He said the infrastructure deficit is what is causing problem in the economy, calling on government to always give more allocation to the capital expenditures in order to touch the lives of the people.

On insurance, he said if there is reduction in the Covina-19 spike and rise in oil price in international market in 2021 above the $40 budget benchmark, the government will have enough money to fund the budget especially the capital expenditures that will translate to more developmental activities.

“When there’s more road construction, housing development, rural electrification, building of new school and hospitals, the common man will benefit, insurance industry will benefit and the nation will grow. That’s why l said earlier that more allocation should be given to capital expenditures,” Adeduro said.

In his contribution, the Deputy General Manager, Marketing and Corporate Communication, Sovereign Trust Insurance Plc, Mr. Segun Bankole, expressed displeasure on the wrong approach of our leaders towards budget implementation.

Mr. Bankole who described the budget as a “yearly ritual” by government, said any budget with higher allocation for recurrent expenditures with little for capital expenditures has nothing to offer the common man.

He expressed regret that the past budgets passed by government has nothing to show, no impact, our roads are still in deplorable condition, our educational system is nothing to write home about and insecurity is the order of the day.

“Every year the government will read the budget at the end nothing is done, nobody cares to know how the budget was spent. No proper monitoring, implementation zero. That’s why the country is where it is today.

“If our past budget cannot take care of our education, healthcare, roads,housing, security amongst others, then what’s the need for the budget.

On insurance, he said there are lots of issues, noting that the government who is the largest spender in the economy is not playing her part well when it comes to insurance.

Apart from not insuring, he said adequate regulation is not being put in place to ensure the growth of the industry, and called on the government to ensure that the issue of insuring government assets is taken seriously by all ministries, departments and agencies (MDAs).

“Government should show good example in meeting her insurance obligations on yearly basis as well as ensure enforcement of the compulsory insurance. The government should look into the issue of regulations. Insurance industry needs that regulations that are growth driven, that will make the industry attractive for investors. It’s no longer news that insurance stocks are penny stocks. How many people will like to invest where they will not get returns?

“The National Insurance Commission, our primary regulator, needs to do more by putting a stop to rate-cutting and other unhealthy/unwholesome practices that are inimical to the industry’s growth,” Bankole advised.