Strengthening NDIC to enhance supervisory operations in modern banking

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The role of Nigerian Deposit Insurance Corporation (NDIC) in reviewing policies and  programmes to enhance its regulatory and supervisory functions in the Deposits Money Banking (DMBs) cannot be overlooked.

The corporation has been engaging stakeholders and members of the Senate Committee on banking, insurance and other financial institutions in several workshops to reamend some laws in NDIC 2006 Act to enable it perform technical activities to guarantee DMBs to operate in healthy environment without rancours. But some of these laws still await lawmakers’ passage.

The NDIC limestone achievements in ensuring stability of the DMBs across the country over the years should be supported by Nigerians considering the fact that their savings with commercial banks are guaranteed.

The Managing Director and Chief Executive Officer of the Corporation, Mr. Bello Hassan during his opening remarks while hosting media practitioners to enhance financial inclusion and create awareness on the rising rates of Ponzi schemes in the country, highlighted some of the achievements though, stressed the fact that the global banking landscape has continued to be defined and challenged by technological disruptions, innovations and novelties cannot be overemphasised. This reality has not only put a demand on regulators and supervisors in the sector across the world to enhance surveillance, but it has also called for stronger collaborations, in order to deliver services that are laced with constantly improved values to the banking public and the society at large. It is in line with the foregoing, that the corporation has carefully chosen the theme of this year’s workshop as: “Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System.”

The NDIC is instructive to add that they have painstakingly selected highly seasoned facilitators from within the corporation, the Central Bank of Nigeria (CBN) and the media to do justice to the various papers already scheduled for presentation at this workshop. The provision of timely support to insured institutions as and when required; to ensure faster and orderly resolutions of liquidated insured institutions; and to continue to assist the CBN in promoting the stability of the banking system. Over the time, they have embarked on series of strategic initiatives to achieve our desired vision, faster and orderly resolution of liquidated banks.

The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation. The liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 DMBs, 367 MFBs, and 51 PMBs. In June 2022, the NDIC had cumulatively paid  N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in-liquidation. It is most profound  to say that, out of the 49 DMBs in-liquidation, the corporation in September, 2022 declared 100 per cent liquidation dividend in 20 of those institutions, meaning  that the corporation has realised enough funds from their assets to fully pay all depositors of the listed banks.

It is imperative to reemphasize that the corporation has performed excellently well going by the statistical data available. Therefore, all hands must be on deck to ensure collaboration with security agencies in reducing the activities of Ponzi schemes popularly known as  “wonders banks”  who come with dubious mindset to swindle potential depositors through unrealistic gains in investment thereby creating fear in the minds of people who are financially excluded in the system. Also the National Assembly must ensure the amendment of some laws relating to revocation and liquidation activities, non amendment of relevant sections of NDIC acts that further empower the corporation as liquidator and other Deposit Insurance system (DIS) are setback to efficient service delivery.