By Hafsat Abdullahi
The Senate has approved the sum of N86.8billion as the 2017 budget of the Nigeria Deposit Insurance Corporation (NDIC).
This approval was following the presentation and adoption of the report of the senate committee on banking, insurance and financial institution, which considered the 2017 budget of the agency.
Presenting the report before the senate, the vice chairman of the Senate Committee on banking, insurance and other financial institution, Solomon Olamilekan, said during the consideration of the budget of the agency, the committee discovered that NDIC, in its 2017 budget, proposed an average inflation rate of 12.90%-19%.
He said the corporation had an estimated Deposit pay-out of N205.024billion provided for DMB and N21.773 billion for MFBs and PMIs to fit any closure and deposit pay-out to depositor of insured institution likely to occur in 2017.
He further added that the agency proposed a Monetary Policy Rates (MPR) of 14 per cent, noting that NDIC has asserted financial assistance to banks at 16 per percent (i.e. 14%+2%) interest rate of MPR and the 14% CBN estimated management rate for Standing Lending Facility (SLF).
The committee vice chairman also observed the need by the agency to comply with the Federal Ministry of Finance directive on Internally Generated Revenue in which the Recurrent Expenditure is restricted to a maximum 75% of 2017 total budget income.
Senator Olamilekan said the agency earmarked the sum of N43.3232billion reserved for capital projects where 85.55% is proposed for execution of major capital projects, even as he said that in the 2017 budget, NDIC proposed N102.294billion to the Total Income Net of funding gap.
At this point, he said the corporation further proposed N76.720billion being 75% of the total income of expendable income for 2017 budget, even as it has a total expenditure of N43.623billion or 50.23% of the total budget reserved for 2017 and funded by the Corporation’s General Reserve Fund with a balance of N49.376billion as at 31stDecember, 2016.