We’ll apply more stringent supervisory measures on banks –NDIC

Uche Usim, Abuja

For a healthier financial sector, the Nigerian Deposit Insurance Corporation (NDIC) on Thursday said it will collaborate with the Central Bank of Nigeria (CBN) in applying more stringent supervisory measures on banks going forward.

It also said about N116.258 billion was spent as cumulative payments to depositors of failed banks as at the end of 2018.

The Managing Director of the Corporation, Mr Umaru Ibrahim, who spoke at the NDIC Special Day at the 2019 Abuja International Trade Fair, said plans were afoot to grow the nation’s banking sector to greater heights.

Ibrahim, who was represented by Mr. Mohammed Ibrahim, the Director Research at NDIC said; “N116.258 billion comprises payments of insured and uninsured deposits of N108.641 billion, N2.973 billion and N70.53 million to depositors of defunct DMBs, MFBs and PMBs, respectively”.

He explained further: “provision of the deposit insurance coverage to subscribers of Mobile Money Operators (MMOs) to the maximum limit of N500,000.00 through the Pass-Through deposit insurance framework. As it stands, the number of licensed MMOs by the CBN is twenty three, with eight being ”Bank-Led” and the remaining fifteen ”Non-Bank Led”. As at 30th of June, 2019, the number of subscribers to MMOs stood at 9,249,265.”

With regards to closer bank monitoring, he said; “in the coming years, the NDIC will continue to work with the CBN to ensure effective supervision of banks and the adherence to prudential guidelines and code of corporate governance for banks to ensure their safety and the overall stability of the Nigerian financial system.”

On capacity building, the NDIC CEO also explained that “the NDIC Academy and Learning Centre was recently accredited by the Chartered Institute of Bankers of Nigeria as a major training hub for financial institutions. In the same vein, the Corporation has continued to provide capacity building for Deposit Insurers in other jurisdictions in Africa and beyond.”

He also said that Corporation in August 2019, signed an MoU on experience sharing and capacity building with the Korean Deposit Insurance Corporation (KDIC) to further deepen the implementation of the DIS in Nigeria. The NDIC is also a founding member of the international Association of Deposit Insurers (IADI) and the MD/ CE is the current Chairman of the Africa Regional committee of that organisation.”