In complimenting the consumer protection efforts of the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) has said it has enhanced public awareness on deposit insurance, financial literacy to reduce the rate at which small depositors being defrauded, thereby enhancing confidence in the banking system.
According to the Managing Director and Chief Executive Officer of the Corporation, Bello Hassan who made this known while mentioning the achievements at the NDIC Editors Forum held in Lagos State recently, disclosed that NDIC have invigorated its liquidation activities.
He added that the corporation have greatly increased debt recovery rate leading to the declaration of 100 per cent of the liquidation dividends to uninsured depositors of over 20 deposit money banks in-liquidation as well as payments to other stakeholders such as creditors, ex-staff and shareholders.
Hassan said further that the Corporation have also improved its system, process and procedures to promote transparency and accountability in its operations, amongst other humble achievements.
He said, “The Deposit Insurance System implemented by the NDIC is an important component of the nation’s financial safety net. The Corporation’s operations which focuses on minimising bank runs.
“And bank failures through strict banking supervision, reimbursement of insured depositors in the event of bank failure, and orderly liquidation of the failed banks, complements the efforts of the Central Bank of Nigeria to achieve a secure and stable banking system.
“It also supports the fiscal authority in maintaining stability within the broader financial system, serving as the foundation for economic growth and development.”
While noted that, NDIC at various times had to confront the same challenges as other financial safety-net players affecting the nation’s financial system as a result of the impact of macroeconomic factors and the changing dimensions of the financial services industry which is constantly evolving.
He said, “Though some of the challenges are universal, others are of course unique and domesticated. It is within this context that the NDIC aligns itself with the Central Bank of Nigeria’s efforts towards strengthening the banking industry through enhancing prudential thresholds
“And other regulatory instruments while deepening engagement and collaboration with all relevant stakeholders in the Nigerian financial system to effectively address challenges and implement solutions.
Relating it to the theme of this year’s event: “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future”, he said the key issues to be put in perspective in the course of this interaction include adequacy of the deposit insurance coverage.
“Faster reimbursement of depositors in the event of bank failure; and of course, the roles of the media in promoting the stability of the financial system amongst others. To this end, there’s no gain saying the fact that your meaningful and constructive contributions are highly expected.
“Indeed, our vast experience at the forefront of deposit insurance practice in Africa coupled with the Corporation’s resilience in the face of challenges and threats is based on the NDIC’s relentless efforts to achieve its vision: “To be one of the best deposit insurers in the world”.
“The roadmap and the robustly outlined in our 2021 – 2025 Strategic Plan, takes into consideration the current realities and future trends, as well as sets out targets, objectives to ensure that the Corporation fulfills its mandate by providing excellent and efficient services to our stakeholders across board”, the MD stated.
Hassan while hailing these Editors said the establishment of this Forum is driven by the imperative of sustaining engagement and fostering a deeper understanding of the Corporation’s mandate, policies, and its programs among the high echelons of the nation’s media industry.
Adding that its ultimate objective is to facilitate robust collaboration, enhance public awareness, and strengthen public confidence in the Deposit Insurance System in Nigeria, contributing to the overall stability of the nation’s financial system.