The Social Security and National Insurance Trust (SSNIT) has in a remarkable fashion converted a deficit of over GH¢300 million into a surplus exceeding GH¢230 million.
During the Committee’s sitting in Parliament to review the Auditor-General’s Report on Government Ministries, Departments, and Agencies as of December 31, 2023, members praised the organization for its 176% improvement in financial performance.
“Last year, you moved from a deficit of over GH¢300 million to a surplus of more than GH¢230 million. That is incredible. What did the trick?” a member of the committee, Isaac Opoku queried the Director-General, Kofi Bosompem Osafo-Maafo.
In response, Mr Osafo-Maafo attributed the turnaround to several factors, including a 29% increase in net contributions and a 49% growth in net investment income.
“The performance was driven by several factors. The first factor – there was a 29% increase in net contributions received. Our net investment income also grew by 49% to about 706 million approximately and there was also a significant increase in other income. We also managed to control costs fairly well. The other income arises from penalties on delays of contributions and also incomes from the sale of our properties,” the SSNIT boss responded.
In a follow-up, Mr Opoku also commended SSNIT for its improved financial ratios, noting that the organization’s current ratio had increased from 1.1 in 2021 to 1.6 in 2023.
“Your current ratio is better than the previous year. In 2021, it was 1.1, and this year, it’s improved to 1.6. So, it’s not too bad, and we can only encourage you to improve upon it,” he remarked.
The Public Accounts Committee applauded SSNIT’s management for the positive financial strides and encouraged the Trust to maintain and further enhance its financial health.
In 2022, SSNIT’s total income surged by 35.1%, reaching GH¢5,272,183,000, up from GH¢3,903,635,000 in 2021. This increase was primarily driven by a rise in net contributions received. Meanwhile, total expenditure grew by 16.9% to GH¢4,930,637,000 in 2022, compared to GH¢4,217,700,000 in the previous year. The increase in expenditure was largely due to a rise in benefits paid out during the year.
