Nigeria

Senate: We’re committed to Nigeria’s financial system stability

UBA SANI

The Nigerian senate in Kaduna on Friday reiterated the commitment of the 9th Assembly towards stabilising the country’s financial system, especially in a distressed economy.

Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani (APC Kaduna Central), said this at the opening of a 3-day retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions and NDIC organised by the NDIC.

According to the lawmaker, financial system stability reinforces trust in the banking system, hence, the need for stakeholders including the NDIC to painstakingly work in synergy to put the country’s economy on a more viable pedestal.

“This retreat is timely as it will allow us to reflect deeply on the

challenges of stabilizing the financial system in a distressed economy.

“The role of the NDIC in this process will be brought to the fore and its experiences, particularly since the COVID-19 pandemic, would be shared and lessons are drawn.

“Strategies would be mapped out to further strengthen NDIC and reposition it to contribute even more effectively to our economic recovery efforts.

“NDIC is a strategic institution that the National Assembly must do all in its powers to ensure it performs optimally. As we all know, financial system stability reinforces trust in the banking system

“Economic growth and development cannot adequately be achieved without the complementary efforts of the institutional frameworks of the financial system which NDIC is one of them.

“It is therefore imperative to ensure the existence of a robust and positive relationship between the key players in the financial sector for the achievement of steady and sustainable economic growth and development”, Sani said.

Earlier in an address, Managing Director and CEO of NDIC, Bello Hassan, noted that the theme of the retreat, “Financing system stability: A panacea for sustainable economic growth and development – the role of NDIC”, was germane considering the current development in the economy and challenges presented by the complexity of the financial system.

The first goal is to ensure that depositors will not lose their deposits held with the bank if the bank becomes insolvent and subsequently fail. The second goal is to contribute to the stability of the financial system by engendering public confidence in the banking system.

To him, the Corporation in collaboration with other key stakeholders have been proactive in managing the risks associated with cyber insecurity and important steps are being taken towards ensuring safety of the Nigerian banks and protection of depositors, in line with its mandate.

The financial expert gave an instance where his organisation in 2020 established a Fintech and Innovation Unit’ to effectively respond to the challenges of cyber threats among other challenges of the Fintech innovations.

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