Vice President Yemi Osinbajo Tuesday said a lot still needed to be done in sanitising the banking system, even as he called for fresh ideas on how to address non-performing loans.
Osinbajo, who spoke while playing host to the board and management of the NDIC at the State House, Abuja, said government was not ready to repeat the mistakes of the past.
A statement by the NDIC’s head, communications and public affairs department, Mohammed Kudu Ibrahim, quoted the vice president as assuring the Ronke Sokefun-led board of support.
Ibrahim said: “The vice president noted that a lot still needs to be done in the area of sanitizing the banking system.
“He also stressed the need for fresh ideas to produce a more resilient structure involving the NDIC and other relevant stakeholders to address the issue of non-performing loans in the industry and warned that the federal government was not prepared to repeat the mistakes of the past.
“On the issue of financial inclusion, the vice president remarked that it was desirous for millions of poor Nigerians to be empowered through the extension of credit and urged for a sustainable framework to achieve the objectives set by the regulators.
“He expressed concerns over the current structure for the operation of micro-finance banks (MFBs) had failed to achieve the desired goals and called for concerted efforts of the relevant institutions including CBN and NDIC to come up with a framework that would facilitate the funding of federal government social intervention programs such as the N-Power, Trader-Money, and Market-Money so as to alleviate the suffering of millions of Nigerians.”
Earlier, the board chairperson, Mrs. Shokefun thanked the vice president for his warm reception, and pleaded with him to assist in speedy passage of the corporation’s Amendment Bill pending before the Senate
She said the NDIC as “a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandates of effective supervision of the insured banks, timely payment of insured deposits and the implementation of a robust and efficient failure resolution regime.”
Also speaking, the MD/CEO of the NDIC, Umaru Ibrahim, said the speedy passage of the Bill to amend the NDIC Act would “strengthen the capacity of the corporation effectively to supervise insured financial institutions for a safe and sound banking system in the country.” He said the NDIC “undertakes periodic examination of banks in collaboration with the CBN and issues reports with far reaching recommendations to the boards of banks for compliance to ensure the safety, soundness and stability of the Nigerian banking system.”