The Senate Committee on Banking, Insurance and Other Financial Institutions has urged the newly appointed management of the Nigeria Deposit Insurance Corporation (NDIC) to prioritise early detection of risks in the banking sector to safeguard depositors’ funds and sustainable growth of the nation’s economy.
The Chairman of the committee, Sen. Mukhail Abiru, who gave the charge in his address at the NDIC 2025 Retreat for the Committee on Monday in Niger State, advised the leadership of the corporation to adopt proactive strategies to prevent crisis in the banking system rather than focusing on interventions after failure of the banks.
The lawmaker, who cited the growing incidents of cyber threats and digital vulnerabilities in the financial system to justify his position, maintained that it had become more imperative for the NDIC’s management to strengthen the corporation’s risk management systems and be more vigilant in its surveillance roles in the banking sector.
He clarified: “We live in rapidly changing times. Beyond the usual challenges banks face, we are also dealing with cyberattacks and other risks. I’m sure you are already thinking of how to incorporate risk management to address these issues in the banking sector, which you are now beginning to oversee.”
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Abiru promised the NDIC management of the readiness of the committee to continuously give legislative support to the corporation in order to achieve its statutory mandate of ensuring the banking system stability.
Also, another member of the committee Sen. Babangida Hussaini, spoke on the need for proactive regulation in the banking sector in view of the implications for depositors’ funds, investor confidence, growth of the sector and multiplier effects on the economy.
He explained: “The main goal of the Corporation is to protect bank customers and investors. It is important that you focus on preventing distress in the banking sector, not just on how to respond after failures. Make sure that people do not lose their money in banks in the first place.”
Citing a report by the Economic and Financial Crimes Commission (EFCC), which detailed insider abuses in the banking sector as a reason for concern, Hussaini advised the new NDIC’s management to intensify supervision and an institutional review of legacy cases, including those relating to insider abuse.
In his remarks, the new NDIC Managing Director, Dr. Oludare Sunday, thanked the Senate for the confidence reposed in the new team and promised that the new management would consolidate on the corporation’s past achievements through engagements with the National Assembly to ensure transparency and alignment of key issues required to guarantee the stability of the financial system.
He said: “We have heard the charge by the chairman of the committee. Like we discussed earlier, there is no intention to reinvent the wheel. If things are working, we will simply fine-tune them and make them better. That is the promise we are making.
“We have been charged to review our risk management system, especially in light of developments like cybersecurity threats. We will treat that with all the seriousness it deserves. It is part of the vision we have for NDIC.
“We thank the National Assembly for the legislative support we have enjoyed so far and the ongoing cooperation. We ask that this support be sustained. We, in turn, assure you that we will do our best to meet with the committee regularly and fulfil our responsibilities”, Sunday added.
