The Social Security and National Insurance Trust (SSNIT) has posted a significant financial turnaround within a year.
It moved from a deficit of over GH₵300 million in 2021 to a surplus of more than GH₵230 million in 2022.
This remarkable improvement, representing a 176% enhancement in financial performance, marks a milestone for the Trust in its ongoing mission to serve Ghanaians.
35.1% surge in total income
SSNIT’s total income in 2022 rose by 35.1% to GH¢5.27 billion, up from GH¢3.90 billion in 2021.
16.9% rise in expenditure
In tandem with the rise in income, SSNIT’s total expenditure also grew, increasing by 16.9% to GH¢4.93 billion from GH¢4.22 billion in 2021.
This rise in expenditure was largely due to higher benefits paid during the year under review.
SSNIT’s robust financial performance in 2022 sets a strong foundation for the Trust as it continues to fulfill its mandate and improve the welfare of Ghanaians.
Director General of SSNIT, Kofi Bosompem Osafo-Maafo, said the increase was primarily driven by a 29% rise in net contributions received during a Public Accounts Committee (PAC) sitting.
Growth in investment income and cost management
He emphasized the significant growth in SSNIT’s net investment income, which soared by 49% to approximately GH₵706 million in 2022.
Effective cost management
He also pointed out that effective cost management was instrumental in achieving the surplus, with SSNIT successfully controlling its expenses while maximizing revenue.
The Director General further noted that the increase in other income, particularly from penalties on delayed contributions and the sale of SSNIT properties, played a crucial role in bolstering the Trust’s financial health.
Resolution of asset possession issues
In addressing questions from the PAC, Mr. Osafo-Maafo spoke about SSNIT’s ongoing efforts to resolve a dispute over the possession of 8.03 acres of land and commercial units from Switchback Developers Ltd. (SDL).
The dispute arose from a disagreement over the valuation of assets following SSNIT’s settlement of a $29.99 million syndicated loan on behalf of SDL.
According to the Auditor-General’s report, despite SSNIT’s payment to Fidelity Bank and Bank of Africa, as outlined in a Deed of Mutual Release signed on October 8, 2021, the Trust has yet to take possession of the assets.
Mr. Osafo-Maafo reassured that SSNIT is actively working to execute the asset swap as agreed during the extraordinary general meeting held on June 3, 2021.
