'How budgetary issues shattered insurers expectations in first quarter'

Chuks Udo Okonta

Insurance operators expectations for a better business in the first quarter, has been shattered by the delay witnessed in the signing into law of this year's budget, Inspen can reveal.

It was learnt that most operators had hinged their expectations on the president's early presentation of the budget to the National Assembly. But the forward and backward movement of the budget between the presidency and the national Assembly, robbed the operators of their expectations as they watched the first quarter went with little or nothing to hold on to.


The President Chartered Insurance Institute of Nigeria (CIIN) Dr. Wole Adetimehin, said the operators had high hope for improved business when the president took the unusual step to present the budget to the national assembly before the end of last year, adding that the expectations were trucated when the budget was kept to the end of the end of the quarter before it was singned into law.
He noted that the delay in the signing of the budget stemmed the activities of government, making it impossible for production and other economic activities to thrive.

He said the delay in signing the budget, will also affect insurance operations in the secord quarter, noting that due to bureaucry in government, most government's ministries, department and agencies would not be able to access and release funds for projects as expected in the second quarter.

"That the budget was tabled before the upper and the lower house in November last year is enough to raise the hope of any sector of the economy, that yes, the basis for planning in the new year is firmly in place. Without economising words, I would say all those hopes and expectations became shattered, because the budget was not signed into law as expected."
Adetimehin called on the government to improve the state of the economy, stressing that businesses including insurance is low due to the high level of poverty in the land.

He noted that lack of basic infrastructure stemmed the productive capacity of the nation, adding that when the economy improves, people would have enough to partake in businesses.
He maintained that in spite the challenges, operators would continue to strive in making their contributions to the development of the economy through the provision of measures to mitigate risks.