By Bassey Udo
The provision of deposit insurance coverage to depositors of licensed banks as contributed significantly to the objectives of the National Financial Inclusion Strategy (NFIS), the Nigeria Deposit Insurance Corporation (NDIC)
has said.
The NDIC said its activities through the supervision of banks not only enhances depositors’ confidence in the financial system, but also serves as incentive to the unbanked to access financial services of the licensed banks.
Also, the Corporation said it has been at the forefront of the implementation of the NFIS in Nigeria as a member of the National Financial Inclusion Governance Committee headed by the Central Bank of Nigeria (CBN).
As a part of the efforts to further enhance the attainment of national financial inclusion targets as the National Financial Inclusion Governance Committee, the Corporation said it plans to host the maiden International Financial Inclusion Conference 2022 scheduled for between November 24 and 25
in Abuja.
With the theme “Financial Inclusion for all: Scaling Innovative Digital Models”, the NDIC said the conference would be the first to be held since the launch of the NFIS in 2012.
The NFIS sets the target of reducing the percentage of adult Nigerians that do not have access to financial services from 46.3 percent in 2010 to 20 percent in
2020.
Since the launch of the NFIS, the corporation said stakeholders have achieved great strides towards realizing the financial inclusion objectives, which has resulted in the exclusion rate dropping from 46.3 percent in 2010 to 35.9 percent in 2020.
The Corporation said it has contributed significantly to the nation’s financial Inclusion objectives through provision of deposit protection to all
licensed deposit taking institutions via its deposit insurance.
“It is important to note that quite a number of the financially excluded individuals failed to join the formal financial system due to fear of possible loss of their savings from bank failure, which the deposit insurance of the NDIC addresses.
“Other areas through which the Corporation supports financial inclusion include supervision and failure resolution of licensed deposit taking institutions, thereby
engendering public confidence; enforcement of regulatory policies, entrenching enhanced risk management practices to improve financial stability through differential-premium assessment system (DPAS) and monitoring of fraud in the banking system thereby supporting financial inclusion.”,
Also, it said financial literacy was critical in accelerating financial inclusion.
Apart from being a member of the Financial Literacy Steering Committee (FLSC) and Financial Literacy Implementation Committee (FLIC), NDIC said it has also undertaken financial literacy education through press briefings, advertorials, jingles on radio and television, participated in trade fairs and exhibitions as well as participated in the World Savings Day, among others, to promote public confidence.
In recognition of the role of electronic and mobile money as a critical tool for financial inclusion, the Corporation said it has extended deposit guarantee to Subscribers of Mobile Money through its Pass-Through Deposit Insurance, while also promoting competition among deposit taking institutions.
The corporation said this was important in driving financial inclusion as smaller institutions like microfinance banks (MFBs), Payment Service Bank (PSBs),
Mobile money operators (MMOs), with no brand visibility that are closer to the unserved/underserved can compete favourably with the larger banks by virtue of the deposit protection offered by the NDIC which makes the depositors feel safe and protected.
Besides, the Corporation said it has developed a Single Customer View (SCV) platform to eliminate delays in reimbursing depositors of failed deposit taking institutions, upon revocation of their license by the Central Bank of Nigeria (CBN).
Presently, the corporation said the financial sector has experienced rapid expansion and diversity of financial services and products deployed within the Fintech ecosystem.
“This presents significant opportunities to further fast track the expansion of financial inclusion to a greater number of Nigerians by enabling them have access to financial services that would address their needs and enhance their quality of life<” it said. Director, Communication & Public Affairs Department, NDIC, Bashir Nuhu, said the International Financial Inclusion Conference 2022 will present a unique opportunity for the corporation to showcase advancements in financial inclusion in Nigeria, spotlighting other jurisdictional experiences, and serve as a platform for policymakers, financial institutions, and other stakeholders to engage on contemporary issues such as innovation, digital technology, and the role of collaboration in achieving financial inclusion for all Nigerians.
