Members of the Board of the Nigerian Deposit Insurance Corporation (NDIC) have been charged to develop strategies to tackle issues that pose threats to the implementation of the National Development Plan 2021 to 2025.
The Minister of Finance, Budget and National Planning, Zainab Ahmed gave the charge at the formal inauguration of the new Board for the Corporation in Abuja on Thursday.
Ahmed who said these issues were posing potential threats to the stability of the country’s financial system, identified them to include poor corporate governance, high level of non-performing loans and slide in revenue generation.
Although she said Financial Technology (Fintech) and block chain technology have potential benefits, the Minister pointed out they also harbour associated risks that must be brought to the front burner, and dealt with.
Acknowledging the critical role of the Board in a strategic institution like the NDIC, the Minister said a lot was expected from the Chairman and Members in terms of their contributions to the stability of the Nigeria financial system.
She said members of the Board were assuming office at a time the Nigerian financial system was still facing some challenges requiring efforts to make the financial system work better.
She urged the Board members to promptly address these issues for the sector to play its role in facilitating the implementation of the National Development Plan 2021 to 2025.
Membership of the Board, she said, were deliberately selected from across the country’s six-geopolitical zones to make for a fair and equitable representation, adding the calibre of persons representing the different regions would tackle and address the challenges head-on.
The Minister charged the Board to design policies and programmes with the Management team to enable the Corporation deliver on its primary mandate of insuring the financial system and depositors from unforeseen losses.
The NDIC was established by Act No. 22 of 1988, which was repealed and replaced with the NDIC Act No. 16 of 2006, to insure the deposit liabilities of licensed banks operating in the country.
She reminded the new Board that the mandate of the Corporation was to provide financial guarantee to depositors of insured banks in the event of failure, supervision of insured banks, distress resolution and liquidation of failed banks.
“The Corporation is therefore the only agency responsible for administering Deposit Insurance Scheme (DIS) in Nigeria and provides financial guarantee to depositors of all deposit taking financial institutions, thereby promoting public confidence in the banking system.
“The Scheme is designed to provide a further layer of protection to depositors’ in partnership with the Central Bank of Nigeria (CBN) in order to ensure safe and sound banking practices in Nigeria,” she said.
Since its establishment over three decades ago, she said the NDIC has exercised its mandate creditably well, by providing details of bank resolutions undertaken, merger and acquisitions and reimbursement to depositors, amongst others.
As a component of the country’s financial safety net, at the forefront of activities that promote financial system stability through the provision of deposit Insurance coverage to depositors of licensed banks.
She commended the NDIC for consistently remitting its 80 percent operating surplus to the Consolidated Revenue Fund (CRF) of the government among many other milestones achieved.
Also, the contribution of the NDIC to the activities of International Association of Deposit Insurance (IADI), in particular the African Region, she pointed out, she said, was also commendable, adding that some African countries with existing Deposit Insurance Schemes (DIS) have benefitted from the experience and knowledge sharing with the Corporation, through its Academy and attachment to the Corporation.
The Minister drew the attention of the Board Chairman and members to their responsibilities and roles in the areas of policy formulation, strategic planning as well as oversight to ensure the organisation delivered on its mandate.
Their responsibilities, she said, also cover the implementation of policies and aspirations of the government, in the areas of anti-corruption and revamping the economy, amongst others.
She assured the Board of government’s continuous support in the discharge of its responsibilities to enable them succeed in their assignment.
Responding on behalf of other members, the NDIC Chairman, Abdulhakeem Mobolaji Abdulateef, assured the Minister that they would try their best to work very closely with the management to realise set agenda and goals.
“As Board members, we will stay on our lane. I assure you because one of the most disturbing things is when people don’t know their roles and they want to overreach themselves. We have so much to do that we do not need to do anybody’s job.
“We assure you that we understand the mandate of this Corporation, which is deposit guarantee, bank supervision, distress resolution as well as bank liquidation. We pray to do our best in line with the interest of the incoming administration to take it from where you have stopped,” the Chairman said.