Vice President, Prof Yemi Osinbajo, on Monday charged the management of the Nigeria Deposit Insurance Corporation (NDIC) to invest massively in Information and Communication Technology and research for smarter regulatory duties as demanded in the 21st century.
This was as the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed revealed that the corporation, in compliance with the Fiscal Responsibility Act, has remitted N212.71 billion into Consolidated Revenue Fund (CRF) since it was established 30 years ago.
Osinbajo who spoke at the book presentation and lecture to celebrate NDIC’s 30th anniversary extolled the corporation for making itself a reference point for deposit insurance globally, especially as it has become a board member of the International Association of Deposit Insurance (IADI).
He thus urged the management not to rest on its oars but reach for new horizons.
He said: “The most significant challenge for the finance industry is probably the bank crisis of 2009. Going by the manner of resolutions it called for the set up of AMCON of N5 trillion worth.
“We should look at better ways of resolutions as the AMCON 2 option may not be viable given the volume of transactions involved.
“You should invest in fintechs and research on smarter ways of regulation. You will need training too”, he said.
In his remarks, the Senate President, Ahmed Lawan assured the corporation that the NDIC 2006 amendment Act, currently with the National Assembly, will be given accelerated hearing once it resumes plenary.
His assurance sprang from an earlier request made by the Ooni of Ife, His Imperial Majesty, Oba Adeyeye Enitan Ogunwusi who said the NDIC needed the new Act to move to the next level by deepening its depositor protection roles.
He said: “Kabiyesi, your motion has received a yes. We will expedite action on it once we resume plenary. It was suspended for budget work as we’re working to pass the budget early and return to January to December budgeting cycle in the overall interest of the economy.
“Once we resume, the NDIC Act 2006 which was presented to the eight National Assembly for amendment, will be a top priority for us. It will be given accelerated hearing. We will work with NDIC to make it more efficient and effective”, he said.
Lawan urged the NDIC to have a robust enlightenment platforms to enable Nigerians appreciate its duties, as it has a lot to do in realizing the goals of the Economic Recovery and Growth Plan (ERGP).
In his goodwill message, Edward Adamu, Deputy Governor, Corporate Services of the Central Bank of Nigeria (CBN) who represented the Governor, Godwin Emefiele, said the apex bank’s collaboration with NDIC and other members of the Financial Reporting Coordinating Committee FRCC has been deepened over the years.
He added that surveillance has been stepped up to detect shocks in the system.
“We’ve partnered on financial literacy, financial system stability and pushing credit to SMEs. We will continue to work to make the system more resilient”, he said.
Mr Umaru Ibrahim said In the desire decade saddled with distress in banking and evolved ways of doing that. It saw the revoke of 33 licenses of banks. Established failed bank tribunals.
Earlier in his opening speech, the Managing Director of NDIC, Mr Umaru Ibrahim said the corporation was saddled with the onerous responsibility of managing distress in the banking system in its first decade of existence.
“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.
“The second decade in the corporation’s evolution was defined by its responses to the regulatory challenges of bank consolidation policy of 2005. The Corporation adopted the Purchase and Assumption (P&A) system to resolve the problems of 13 banks whose licenses were revoked for failing to meet the N25 billion capital requirement.
“The NDIC Act was amended in 2006 to strengthen the Corporation’s powers so as to execute its mandate more effectively. However some challenges experienced since 2006 have necessitated the need to review the NDIC Act by the National Assembly”, he explained.