Stakeholders’ Collaboration Crucial To Strengthening Banks’ Regulatory Instruments-NDIC

Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, (NDIC), Bello Hassan, has said that the desire to strengthen Nigeria’s banks through prudential thresholds and other regulatory instruments, calls for
collaboration with all relevant stakeholders in the Nigerian financial system.

The NDIC Managing Director/Chief Executive said this recently when he addressed the the 20th edition of the NDIC Workshop for Business Editors and members of the Finance Correspondents Association of Nigeria (FICAN).

The Managing Director said it was gratifying that for two
decades, the collaboration between the Corporation and the media through
this platform had not only been sustained, but also continued to be refined towards addressing the issue of capacity building in the field of Deposit
Insurance System (DIS) in particular, and the financial system in general.

Here’s a full text of the speech:

Equally important is the expansion of scope of the workshop to
accommodate members of the Civil Society Organisations (CSOs) and
Association of Corporate Affairs Managers of Banks (ACAMBS).

While the CSOs were included in view of their crucial role in promoting advocacy and sensitization in support of the public awareness drive of the Corporation, the
ACAMB’s involvement was aimed at strengthening the media’s interface
with the banks in the interest of the depositors and the larger financial

As you are aware, the Deposit Insurance System, as a critical component
of the financial safety net, has continued to play critical roles in
complementing the drive of the Central Bank of Nigeria (CBN), in promoting
stability in the financial system.

This becomes more significant for the NDIC with a broad mandate of Risk Minimizer.

As expected, the Deposit Insurer
has always been impacted by the challenges that confront the financial
system at various times.

Though some of the challenges are universal, others are however, unique.

The desire to strengthen our banks through prudential thresholds and other regulatory instruments, calls for
collaboration with all relevant stakeholders in the Nigerian financial system.

It is this background that informed the choice of this year’s FICAN Workshop
theme: “Stocktaking of Deposit Insurance Practice: Assessing the
Past, Evaluating the Present and Forecasting the Future”.

It is therefore profound and instructive, that the 20th edition of this workshop
has been organized to share thoughts, knowledge and experience together
with you as critical stakeholders, with a view to defining a brighter and
insightful future for the practice of DIS in Nigeria.

Some of the issues to be
put in perspective include the adequacy of the deposit insurance coverage;
developments in bank distress resolution; the role of technology in the future of deposit insurance; faster reimbursement of depositors in the event of bank failure; and of course, the roles of the media in promoting fintech in the banking system, amongst others.

There’s no gain saying that your
meaningful and constructive contributions in the course of this workshop are highly expected.

Please permit me to recall that at my maiden FICAN Workshop outing at
Ibadan on 20th October 2021, I underscored the determination of the current Management of the NDIC to work harmoniously with all stakeholders,
particularly the fourth estate of the realm, towards a more effective
discharge of the Corporation’s mandate.

I also laid out the key focus of the
Management Team under my humble leadership: to scale up the deposit
insurance framework; provide timely support to insured institutions as and
when required; ensure faster and orderly resolutions of liquidated insured
institutions; as well as assist the monetary authority in promoting the stability of the banking system.

It may interest you to note that, in order
to deliver on this, which is in harmony with the vision of the Corporation: “To
be one of the best deposit insurers in the world”, we launched the 2021 –
2025 Strategic Plan, which was formulated in consideration of current
realities and trends, as well as the desire to differentiate the Corporation by
providing excellent and efficient services to our stakeholders across board.

I am glad to report that our commitment in this regard has not gone without
yielding the desired results.

We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; we have enhanced collaboration with the bar
and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases; we have equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement,
which had enabled us to resolve some hitherto protracted failed bank
litigations; we have reviewed the Framework for Differential Premium
Assessment System (DPAS) to make it more risk sensitive and account for
significant developments that have taken place in the Nigerian banking
system since its adoption in 2008; and we have established a special desk
at the Economic and Financial Crimes Commission (EFCC) which has
energized investigation and prosecution of parties responsible for failure of

The Corporation has also reached an advanced stage in the review
of the maximum deposit insurance coverage, to account for the impact of
macroeconomic developments, since its last review.

It is our belief that the
new coverage level once approved will go a long way in reinforcing
depositors’ confidence on the NDIC’s deposit guarantee scheme.

In complementing the consumer protection efforts of the CBN, we have
enhanced public awareness on the benefits and limitations of the deposit
insurance system and financial literacy, to reduce the rate at which small
depositors are being defrauded, thereby enhancing confidence in the
banking system; we have invigorated our liquidation activities, and greatly
increased debt recovery rate leading to declaration of 100 per cent
liquidation dividends to depositors of over 20 deposit money banks inliquidation;
and we have also improved our systems, processes and
procedures to promote transparency and accountability in our operations,
amongst other humble achievements.

It is therefore a welcome development to us that the Corporation has been
identified for various special recognitions and awards amongst the comity of Ministries, Departments and Agencies (MDAs) by credible bodies and
institutions, some of which I would like to highlight as follows:
i. Year 2021 and 2023 Overall Best Public Institution among 360 MDAs
in the Independent Corrupt Practices and Other Related Offences
Commission’s (ICPC) Ethics and Integrity Compliance Scorecard
ii. First Position in the 2021 Transparency & Integrity Index, a public
sector assessment by the Center for Fiscal Transparency & Integrity
Watch (CeFTIW), a non-governmental and non-partisan organization
established in 2016 and supported by the MacArthur Foundation with
the aim of promoting accountability and transparency within the public
iii. Platinum Award in 2022 by the Bureau of Public Service Reform
(BPSR) after the deployment of its Self-Assessment Tool (SAT) to
Federal public institutions to assess the broad areas of governance,
financial management, strategic planning, operational leadership,
procurement management, etc;
iv. Attainment of three ISO Certifications in 2023, through MSECB, a
leading international provider of Audit and Certification Services,
namely: Information Security Management System ISO/IEC
27001:2013, IT Service Management System ISO/IEC 20000-1:2011,
and Business Continuity Management System, ISO 22301;
v. 2023 Best Performing Ministerial Servicom Unit (MSU) in the Team
“C” Category for Ministries, Departments and Agencies (MDAs) by the
SERVICOM Office of the Presidency;
vi. 2022 Best Contributing Employer in Human Resources Development
by the Industrial Training Fund (ITF);
vii. Election of the Managing Director/Chief Executive of the Corporation
into the Executive Council (EXCO) of the International Association of
Deposit Insurers (IADI) in October 2022; and
viii. Election of the Managing Director/Chief Executive of the Corporation
as the Vice-Chairperson of the IADI-Africa Regional Committee in
September 2023.

You will agree with me that these awards and recognitions bear eloquent testimonies to the irrevocable commitment of the
current Management Team of the NDIC and the staff, to bringing about a
paradigm shift in the discharge of the Corporation’s mandate.

It is therefore,
my sincere hope that the discussions at this forum, would go a long way to
strengthen our resolve, for a more robust implementation of the deposit
insurance system in Nigeria, to complement the Central Bank’s efforts in
strengthening the safety, soundness and stability of the financial system.

I profoundly thank you all for honoring our invitation once again, to yet another edition of the FICAN Workshop while wishing you fruitful deliberations, warm stay in the ancient city of Owerri,
and a safe return to your various destinations at the end of the workshop.

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