The Federal Government will from the opening of 2014 withdraw budgetary allocation to the National Insurance Commission (NAICOM).

CEOAFRICA news desk gathered that the reason for this decision was to allow it fund its operations from its internally generated revenue.

Yerima Ngama, the Minister of State for Finance, disclosed this on Tuesday in Abuja at the inauguration of the NAICOM board of directors.

He said that the withdrawal became necessary because the commission is now well established and can run itself.

His words, “When the NAICOM was set up, the expenses were supported by the Federal Government through the budget but as the industry is evolving and their internally generated revenues are expanding, we expect that the income it makes should be enough to run its own operations, including supervising the insurance industry.”

“Today, the industry has grown and is healthy; we believe that as from next year, the NAICOM, just like the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) will generate enough revenue internally to run its activities without recourse to the budget of the Federal Government,” he stated.