WorldStage Newsonline– The Nigeria Deposit Insurance Corporation (NDIC) contributed N212.71 billion into the federal government consolidated revenue fund since inception in 1989, according to the Minister of finance budget and planning, Zainab Ahmed.
The Minister represented by the Director Hone finance, Okoh Udom on Monday at NDIC 30 years Anniversary and book presentation in Abuja, added that the NDIC had been in the forefront of the activities that promote financial system in Nigeria.
She said: “Today, its accumulative remittances to the consolidated revenue fund stands at over N212.71 billion. The executive arm of government is also aware of remarkable effort of the importance of cooperation to enhance financial inclusion in the country.”
Ahmed, however noted that since the inception of the NDIC, the corporation had worked in close collaboration with other financial safety system and had been able to make significant progress, adding that the Executive Arm of government is also aware of remarkable effort of the importance of cooperation to enhance financial inclusion in the country.
Meanwhile, the Senate president, Ahmed Lawan has assured that the NDIC Act for amendment before the National Assembly which has been pending with the eight session will be given a top priority, at the resumption plenary sections.
According to him, “NDIC Act will be amended as soon as the National Assembly resume back to plenary sections.
“You all know that the national assembly chambers have suspended plenary sections against budget defense for the executive arm of government; we are doing this on purpose to ensure that we are able to pass the budget in December, to have a January to December budget. When we resume plenary the NDIC amendment Act will be a top priority of the senate.”
The Special Guest of Honour at the event, Vice-President, Prof. Yemi Osinbajo, commended the NDIC for it close collaboration with the Central Bank of Nigeria for effectively regulating the banking sector that Nigeria depositors are protected.
He said: “I have already heard of the various institutional achievements of the NDIC in the past three decades of its existence. The part it played in stabilizing the financial system, especially the period immediately after the early days of privatization and private ownership of banks and its role in the failed banks crisis that followed immediately after. The various professional and standard distinctions that it has received through the years.
“Most significant challenge the financial system has experienced so far, was that bank crisis in 2009. Going by the manner of the resolution, it appears the preferred touch was the establishment of AMCON, an option that cost something in the range of N5 trillion of money at that time.”
In his Goodwill message, Ooni of Ife, Oba Adeyeye Ogunwusi ( Ojaja II), appealed to the 9th National Assembly to expedite action on the amendment of the NDIC Act.
Oba Adeyeye, further commended both the NDIC board and the cooperation for been a cover to Nigeria depositors in the country.
“Without the staff of this great institution, there will never be NDIC, thank you for your support and everything you are doing to make our country great, we are not there yet but we know we will get there,” he said.
Earlier in his welcome address, NDIC Managing Director, Mallam Umaru Ibrahim, said the corporation since inception had introduced some reforms.
“The Corporation introduced significant reforms during the period, such as Enterprise Risk Management, Differential Premium Assessment Systems (DPAS), built capacity of staff in Risk Based Supervision (RBS) and deployed a new performance management system. The Corporation also extended DIS coverage to Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs). It also reviewed the maximum coverage for different categories of deposit taking financial institutions,” he said.
“In the first decade of its existence, the NDIC was saddled with the onerous responsibility of managing distress in the banking system. It adopted multiple distress resolution options including provision of financial assistance to deserving institutions, imposition of holding actions, change of management of affected banks, and assisted mergers. It also became necessary to undertake the orderly liquidation of 33 banks whose licenses were revoked by the CBN. The Corporation also implemented the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994, which established Failed Banks Tribunals to prosecute those who were responsible for the failure of the banks.”
According to the Mr. Aigboje Aig-Imoukhede, a guest lecturer, weak corporate governance was an issue of banks failure. He commended the CBN and NDIC for enthroning strict corporate governance in the banking system.
He said: “Together, and in collaboration with a number of other regulators, the CBN and NDIC have superintended a remarkable improvement in the conduct of banking corporate governance over the last decade. They have been guided and supported by a range of legislative and regulatory tools and including the CBN Act, the NDIC Act, and other regulatory institutions such as the Financial Reporting Council, the Chartered Institute of Bankers, and if the Banks are public then the Securities & Exchange Commission and the Nigeria Stock Exchange.”
In attendance at the event include, Vice- President, Prof. Yemi Osinbajo, as guest speaker, Mr. Aigboje Aig- Imoukhede Guest Lecturer, CBN Deputy Governor (Corporate services) Mr. Edward Adamu, Ooni of Ife, His Imperial Majesty Oba Adeyeye Enitan Ogunwusi( Ojaja II); Emir of Kazaure, Najib Hussaini Adamu and past Managing Directors and staff of the corporation and other eminent personalities in banking and finance sector.
