The Nigerian Deposit Insurance Corporation (NDIC) developed and launched its 2021-2025 Strategic Plan to facilitate a faster and orderly resolution of liquidated insured institutions.
The Managing Director of NDIC, Bello Hassan, said the plan, which was formulated in consideration of current realities and trends, was also to assist the monetary authority in promoting the stability of the banking system.
Hassan said the plan, which was in harmony with the Corporation’s vision of becoming one of the best deposit insurers in the world, was also in line with the desire to differentiate the Corporation by providing excellent and efficient services to its stakeholders across board.
Hassan spoke in Owerri, Imo State on Wednesday at the opening of the 20th edition of the annual workshop by the Corporation for Business Editors and Finance Correspondents Association of Nigeria (FICAN).
He said the key focus of his management team was to scale up the deposit insurance framework to ensure effective delivery of its mandate.
Highlighting the outcomes as a result of the Corporation’s commitment to pursue its mandate, the MD said the NDIC has been able to introduce the Single Customer View (SCV) framework to enhance speedy payment of insured sums to depositors of closed banks; enhance collaboration with the legal system, leading to speedy dispensation of justice and more informed judgments on failed banks cases, and put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which enabled the Corporation resolve some hitherto protracted failed bank litigation.
Also, he said the NDIC has reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that occurred in the Nigerian banking system since its adoption in 2008 as well as established a special desk at the Economic and Financial Crimes Commission (EFCC) which has energised investigation and prosecution of parties responsible for failure of banks.
The Corporation, he said, has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review, adding that it’s belief was that the new coverage level once approved would reinforce depositors’ confidence on the NDIC’s deposit guarantee scheme.
In complementing the consumer protection efforts of the Central Bank of Nigeria (CBN), which is the regulatory authority of the financial system, he said the NDIC has enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to reduce the rate at which small depositors are being defrauded.
This, he pointed out, would enhance confidence in the banking system and invigorate the Corporation of its liquidation activities, and greatly increase debt recovery rate, leading to the declaration of 100 percent liquidation dividends to depositors of over 20 deposit money banks in liquidation.
He said the NDIC has also improved its systems, processes and procedures to promote transparency and accountability in its operations, which have resulted in several achievements that have attracted various special recognitions and awards from Ministries, Departments and Agencies (MDAs) as well as organisations and institutions.
Some of those awards of recognition include “Overall Best Public Institution among 360 MDAs in 2021 and 2023 by the Independent Corrupt Practices and Other Related Offences Commission’s (ICPC) Ethics and Integrity Compliance Scorecard(The EICS); the First Position in the 2021 Transparency & Integrity Index, a publicsThe sector assessment by the Centre for Fiscal Transparency & Integrity Watch (CeFTIW), a non-governmental and non-partisan organisation established in 2016 and supported by the MacArthur Foundation with the aim of promoting accountability and transparency within the public sector.
The other awards include a Platinum Award in 2022 by the Bureau of Public Service Reform (BPSR) for the deployment of its Self-Assessment Tool (SAT) to Federal public institutions to assess the broad areas of governance, financial management, strategic planning, operational leadership, procurement management , etc; attainment of three International Standard Organisations (ISO) Certifications in 2023, through MSECB, a leading international provider of Audit and Certification Services.
Some of the certifications include Information Security Management System ISO/IEC 27001:2013; IT Service Management System ISO/IEC 2000 – 1:2011, and Business Continuity Management System, ISO 22301; 2023 Best Performing Ministerial Servicom Unit (MSU) in the Team“C” Category for MDAs by the SERVICOM Office of the Presidency; 2022 Best Contributing Employer in Human Resources Development by the Industrial Training Fund (ITF); Election of the Managing Director/Chief Executive of the Corporation into the Executive Council (EXCO) of the International Association ofDeposit Insurers (IADI) in October 2022, and Election of the Managing Director/Chief Executive of the Corporation as the Vice-Chairperson of the IADI-Africa Regional Committee in September 2023.
“These awards and recognitions bear eloquent testimonies to the irrevocable commitment of the current Management Team of the NDIC and the staff, to bringing about a paradigm shift in the discharge of the Corporation’s mandate,” the MD said.
He expressed the hope that the growing collaboration and partnership between the Corporation, the media and civil society would strengthen the resolve to implement the deposit insurance system in Nigeria, to complement the Central Bank’s efforts in strengthening the safety, soundness and stability of the financial system.
On the benefits of the workshop, the MD said the collaboration between the Corporation and the media has not only been sustained over the last two decades, but has continued to be refined towards addressing the issue of capacity building in the field of Deposit Insurance System (DIS) in particular, and the financial system in general.
The collaboration with the media, he said, has been expanded to include Civil Society Organisations (CSOs) and the Association of Corporate Affairs Managers of Banks (ACAMBS).
While the CSOs were crucial for their role in promoting advocacy and sensitization in support of the public awareness drive of the Corporation, the MD said the ACAMB would strengthen media’s interface with the banks in the interest of the depositors and the larger financia lsystem.
“The Deposit Insurance System, as a critical component of the financial safety net, has continued to play critical roles in complementing the drive of the Central Bank of Nigeria (CBN), in promoting stability in the financial system. This becomes more significant for the NDIC with a broad mandate of Risk Minimizer. As expected, the Deposit Insurers have always been impacted by the challenges that confront the financial system at various times. Though some of the challenges are universal, others are, however, unique.
The desire to strengthen our banks through prudential thresholds and other regulatory instruments, calls for collaboration with all relevant stakeholders in the Nigerian financial system.
The theme of this year’s FICAN Workshop was “Stocktaking of Deposit Insurance Practice: Assessing thePast, Evaluating the Present and Forecasting the Future.”
During the workshop, some of the issues discussed included adequacy of the deposit insurance coverage; developments in bank distress resolution; the role of technology in the future of deposit insurance; faster reimbursement of depositors in the event of bank failure; and the roles of the media in promoting fintech in the banking system.