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From Uche Usim, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) said it is deepening its financial literacy campaign across various schools in the country, as strategy to bringing millions of unbanked citizens into the formal banking ecosystem.
Against this backdrop, the Corporation has celebrated its 2023 Financial Literacy Day (FLD) with a lecture it sponsored at the Government Secondary School Tudun Wada, Wuse Zone 4, Abuja.
Speaking at the event which attracted four other secondary schools, Dr Waziri Galadima of the Research Department, NDIC, said the programme was an offshoot of the Global Money Week (GMW), being an annual global awareness campaign on the importance of ensuring that young people, from an early age, are financially aware, and are gradually acquiring the knowledge, skills, attitudes and behaviours necessary to make sound financial decisions and ultimately achieve financial well – being and financial resilience.
He said the event held simultaneously across the globe, adding that the theme for this year is; “Plan your Money, Plant your Future”.
According to him, throughout the GMW editions which commenced in 2012, the campaign has reached over 53 million children and young people in 176 countries worldwide.
He taught the young minds about spending wisely, budgeting, saving and other issues around financial literacy and intelligence.
“Financial literacy helps you to understand and effectively use various financial skills such as personal financial management, savings, budgeting, investing, etc. Specifically, it helps you to acquire knowledge on how money works in the world. In fact, learning about how money works will sow a seed for a thriving future. “Money is a medium of exchange that people have agreed on. In summary, money is a numerical value.
“Currency is a type of money that is issued by a country and circulated within that country. Currency can be physical, through notes and coins, or i electronic and digital.
“Saving is the act of putting money aside for future use.
There are different ways to save, like putting your money in a savings box, through savings groups, but the recommended way is in a bank account.
“Financial regulations are rules and laws that govern how financial institutions, such as banks and investment firms, operate and conduct business.
“Financial services regulators are organisations that make and enforce rules to ensure that financial markets and institutions operate fairly and safely”, he explained .
Also speaking, another NDIC official, Tanko Ibrahim, said the NDIC collaborates with the Central Bank of Nigeria (CBN) in bank supervision so as to protect depositors; foster monetary stability; promote an effective and efficient payment system; and promote competition and innovation in the banking system.
“Supervision is done through off-site surveillance and on-site examination of insured institutions.
“The Corporation collaborates with the CBN to undertake the On-site Examination of all licensed deposit taking financial institutions.
“The Corporation also ensures that failing and failed institutions are resolved in a timely and effective manner. This is done through: Financial assistance – loans, guarantee for loans, accommodation bills; Technical assistance – takeover of management and control of a bank, changes in management, assisted merger or acquisition by another bank; Arranged Purchase and Assumption of failed banks (e.g. Zenith Bank & Eagle Bank);Incorporation of a bridge bank to take over the asset and liabilities of a failing bank. (Bank PHB to Keystone; Afribank to Mainstreet; Spring Bank to Enterprise Banks in 2011 & Skye Bank to Polaris Bank in 2019)
“In the event that a bank cannot be assisted by any of the resolution options, and therefore fails, NDIC ensures that liquidation is done in an orderly and efficient manner. Liquidation commences after the revocation of operating license by the CBN. “It involves: Revocation of operating license;
Orderly closure; Settlement of claims – depositors (priority), creditors and shareholders where possible; and Cost effective realization of asset”, he explained.
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