The Federal Government has inaugurated the Board of Nigeria Deposit Insurance Corporation (NDIC).
The Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed inaugurated the board on behalf of the FG.
Addressing the Board, she said they are assuming “duty at a time when the Nigerian Financial System is still facing some challenges and requires efforts aimed at addressing issues such as corporate governance, high level of non-performing loans and slide in revenue generation. The potential benefits and risks associated with the Financial Technology (Fintech) and block chain technology are also on the front burner.”
She said these and other challenges can cause threats to the stability of our financial system and must be addressed promptly for the sector to play its role in facilitating the implementation of the National Development Plan 2021 to 2025.
She challenged them “to design policies and programmes with the Management team to enable the Corporation deliver on its mandate.”
“As you may be aware, NDIC was established by Act No. 22 of 1988 that was repealed and replaced with the NDIC Act No. 16 of 2006, to insure the deposit liabilities of licensed banks operating in Nigeria. The mandate of the Corporation is 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” he said.
She promised that the FG will support the Board and the Management of the Corporation in the discharge of your responsibilities.
Responding the NDIC Chairman Abdulhakeem Mobolaji Abdulateef the Board will do it’s best to work very closely with the management that is performing.
“And we will as board members stay on our lane. I assure you because one of the most disturbing things is when people don’t know their role and they want to over reach, because 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” he stated.
Address challenges facing financial sector-FG charges NDIC Board
