The National Assembly has pledged continued partnership with the Nigeria Deposit Insurance Corporation (NDIC) to strengthen regulatory frameworks for stabilising the nation’s financial ecosystem and safeguarding depositors’ funds.
The House of Representatives Committee on Insurance and Actuarial Matters made the pledge on Thursday in Lagos during the opening ceremony of a stakeholders’ retreat.
The workshop, jointly organised by the House Committee and NDIC, was with the theme ‘Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability.’
Mr Ahmadu Jaha, Chairman of the House Committee on Insurance and Actuarial Matters, highlighted the challenges facing the nation’s financial space and the need for collaboration.
Jaha said the nation’s financial system had faced pressures, including inflation, currency volatility, cyber threats, and changes in global banking and investment models.
He emphasised that the NDIC plays a vital role in maintaining public confidence in the banking sector through deposit protection, bank supervision, failure resolution, and financial literacy.
Jaha explained that the scale and complexity of modern financial disruptions require an enhanced, adaptive regulatory framework, one that is both proactive and resilient.
He stressed that synergy between the legislature and institutions like the NDIC is crucial to address these challenges effectively.
“Our collective responsibility is to ensure that financial safety nets are continually refined to meet present and future challenges,” he said.
Jaha reaffirmed the House Committee’s commitment to providing legislative support and oversight for the NDIC to function at the highest level of efficiency and effectiveness.
He acknowledged that the NDIC’s powers must evolve to address emerging risks and ensure the Corporation remains agile and responsive to financial system stability.
The workshop, he added, would help stakeholders explore strategies to strengthen deposit insurance, improve supervisory oversight, and enhance risk management practices.
He noted that financial disruptions, whether from macroeconomic instability or technological shifts, are inevitable in any modern economy.
“Our task is not to wish them away, but to ensure that our safety nets, particularly the NDIC, are robust enough to mitigate their effects,” he said.
Jaha assured of continued collaboration with NDIC and other stakeholders to craft sound policies and legislation that protect the financial system from future disruptions.
“Together, we can fortify the NDIC’s mandate and enhance economic stability for the benefit of all Nigerians,” he said.
He also stated that the theme of the retreat was timely, addressing global economic uncertainties, technological disruptions, and evolving financial risks.
Earlier, NDIC Managing Director/CEO, Mr Bello Hassan, explained financial disruptions as events that alter how things are done, bringing both opportunities and challenges.
Hassan identified contributors to financial disruptions, including digital innovations, poor governance, market volatility, economic shocks, inadequate risk management, cybersecurity risks, and Ponzi schemes.
He warned that if these challenges are not addressed effectively, they could erode public and investor confidence, destabilising the financial system.
To manage these challenges, Hassan said banks need a multifaceted strategy that combines resilience, innovation, and a culture of compliance with regulations.
He thanked the committee for its ongoing support, which has helped the NDIC fulfil its mandates.
Hassan described the retreat as a platform to assess challenges, share insights, and develop strategies to enhance the NDIC’s mandate.
He condemned the growing prevalence of Ponzi schemes, citing the recent collapse of the CBEX pyramid scheme, which caused a loss of N1.3 trillion.
The NDIC, he said, remains committed to protecting the public by raising awareness of the risks posed by unlicensed financial institutions.
Hassan thanked the lawmakers for their partnership in safeguarding depositors’ interests and preventing fraudulent schemes.
