Senate To Fast-track Amendment Of NDIC Act

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The National Assembly has said it will work with the Nigeria Deposit Insurance Corporation (NDIC) to ensure that it provides amendment of its enabling Act currently before the lawmakers to help the corporation’s effort towards stabilizing the banking system and win the full trust of the public.

“Every one of us here (am sure) will agree that the NDIC Act needs to be amended. I want to assure you that when we resume plenary, the NDIC Act amendment Bill will be a top priority to us,” Senate President Ahmed Lawal said yesterday in his goodwill message at the public lecture and book presentation to mark the 30th anniversary of NDIC in Abuja.

The Senate President was responding to a call by the Ooni of Ife, His Imperial Majesty, Oba Adeyeye Enitan Ogunwusi for the Senate to amend the Act to cover both small and large sum depositors in the industry – raise the maximum insured deposit.

Chairman, House Committee on Banking and currency Hon Victor Nwokoro who represented the Speaker, House of Representative, Femi Gbajabiamila had earlier promised the corporation of the House to support NDIC is achieving its mandate, while stating the need to enhance technical planning operations in the supervision of the banking sector.

The NDIC management is seeking the amendment of Act, 2006 to allow it deal with salient challenges inhibiting its operations and to raise the benchmark for insured customer deposit from N500,000.

“The National Assembly will always join hands with the NDIC not only to contribute to its success, but also ensure that its requests are given expeditious treatment,” he added.

Urging the NDIC not only to showcase its milestones, mandate and achievements to the general public, Senator Lawal asked the corporation to also rededicate itself to continuous engagement with the banking public by further educating them on its activities. This, he said is very critical as it will effectively contribute to the realization of NDIC’s core mandate of protecting bank depositors.

Co-founder of Access Bank, Aigboje Aig-imoukhuede who was the guest lecturer asked the monetary authorities to ease its monetary policies and manage the uncertainty issue around the foreign exchange for effective banking system.

“I do not believe that some of our policies are helping,” he said, adding, “We have to ease monetary policy and proactively manage the uncertainty around foreign exchange risk. We cannot bury our heads in the sand. We must stress test and ensure effective contingency planning. We must be proactive not reactive.”

Aig-imoukhuede said the Nigerian banking system is a huge highly flammable asset which is unfortunately in close proximity to several challenges capable of igniting a fire and we must take proactive steps to insulate this asset from the risks around us.

He delivered the lecture tagged: “Emerging Risks and Corporate Governance Issues in Banking”.

Vice President Yemi Osinbajo who was also the guest speaker at the event said the NDIC is not only a reference point for deposit insurers globally but has demonstrated that it is an institution that deserves accolades and recommendations.

Professor Osinbajo said the federal government is looking for a much larger customer base for the banks to contribute to meeting the 100,000 million jobs target set by President Buhari. “There is a lot of work to do. I trust the Board members whose talent I can attest to will be ahead of the challenges of the future,” he stated.

MD/CEO of NDIC, Umaru Ibrahim assured the gathering that the Corporation “will continue to do our very best to support the laudable economic policies and programmes of the Federal Government.”

He noted that the last 10 years of the Corporation was characterized by accelerated institutional growth, robust collaboration with strategic partners in the financial safety net and renewed drive for financial literacy.

Deputy Governor, corporate services of the CBN, Edward Adamu who represented CBN Governor Godwin Emefiele said the central bank will continue to work with NDIC; coordinate with NDIC and other stakeholders in the industry to make system more resilient because a very resilient financial system is key to sustainable economic growth.

Noting that the regulatory capacity to oversee the banking sector was built to address the risks of the sector as it was in 2008, Aig-imoukhuede said the country has to bring in new risk management talent in the banks as an urgent imperative to suit the evolving nature of banking, the stakes have gone up and we must respond appropriately.