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FG Tasks New NDIC Board On Financial System Stability

The Federal Government on Thursday charged the newly appointed board members of the Nigeria Deposit Insurance Corporation (NDIC) to vigorously pursue sundry initiatives aimed at sustaining the stability of the nation’s financial system stability and growth in view of the increasing risks posed by financial technology (Fintech) and block chain technology to the global financial system.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who gave the charge in her remarks during the inauguration of the newly appointed Board members in Abuja, stressed that government was expecting the team to exceedingly surpass its expectations in terms of the corporation’s contributions to the stability of the nation’s financial system.

The minister noted that they were assuming duty at a time when the Nigerian financial system was still facing some challenges and required efforts aimed at addressing issues such as corporate governance, high level of non-performing loans and slide in revenue generation just as the potential benefits and risks associated with the fintech and block chain technology remained at the front burner.

She pointed out the fintech and block chain technology’s threats and other related challenges can undermine the stability of the nation’s financial system and must be addressed promptly for the sector to play its role in facilitating the implementation of the National Development Plan 2021-2025.

Noting that the Board members are representatives from the six-geopolitical zones of the country thereby making their appointment a fair and equitable representation, Ahmed maintained that she had no doubt that with the calibre of personalities in the Board, the challenges would be frontally tackled.

She said: “I therefore charge you to design policies and programmes with the management team to enable the Corporation deliver on its mandate”

Ahmed recalled that since the establishment of the corporation over three decades ago, it had remained committed to fulfilling its mandate and performed creditably well in terms of bank resolutions undertaken, Merger and Acquisitions and reimbursement to depositors, amongst others.

In addition, the minister explained that the achievements reflected the NDIC’s importance as a component of the nation’s financial safety that had always been at the forefront of activities that promote financial system stability through the provision of deposit Insurance coverage to depositors of licensed banks.

Responding to the minister’s charge to the newly appointed NDIC board members, the Chairman, Abdulhakeem Mobolaji Abdulateef, assured that the Board members would do their best to work very closely with the management and fully focus on the Board’s mandate.

He promised: “I assure you because one of the most disturbing things is when people don’t know their role and they want to over reach, because we have so much to do that we do not need to do anybody’s job.

“We assure you that we understand the mandate of this Corporation which is deposit guarantee, bank supervision, distress resolution as well as bank liquidation”, Abdulateef added.

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