MD NDIC Says They’ve Introduced Significant Reforms During His Speech Anniversary of #NDICat30



It gives me immense pleasure and honour to welcome you all to this event. I am exceedingly delighted with the presence of His Excellency, the Vice President, Federal Republic of Nigeria, Professor Yemi Osinbajo (GCFR); the Senate President, Dr. Ahmed Ibrahim Lawan, Speaker of the House of Representatives, Honourable Femi Gbajabiamila, ably represented by the Chairman, House Committee on Banking and Currency, Hon. Victor Nwokolo, the Executive Governor of Kano State, Dr. Abdullahi Umar Ganduje, and our revered Royal Fathers.

Let me also appreciate the presence of our supervising Minister, the Honourable Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed; who is also ably represented by the Director Home Finance Mr. Okonkon Udo, the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Uba Sani, as well as the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, who is ably represented by Mrs. Aisha Ahmed, Deputy Governor, Financial System Stability.

I am also delighted that the representatives of the Secretary-General of IADI, Mr. Nikolay Remchukov, the Chairman, CDIC Taiwan, Ling Ming-kuan, the Chief Executive Officer, Deposit Protection Fund of Uganda, Julia Oyet, her Chairman Mr. Ben Patrick Kagoro, and the CEOs of Angola DIS, WAMU, Ghana are also here with us. I thank you all for honouring our invitation to this historic occasion.

Your excellences, Hon Ministers, distinguished guests, we are gathered here today to celebrate the successes of the NDIC in delivering on its mandate over the last 30 years.

Today’s event witnesses the public presentation of a book, 30 years of DIS in Nigeria. It documents the Corporations modest beginnings and achievements over the period.

In the first decade of its existence, the NDIC was saddled with the onerous responsibility of managing distress in the banking system. 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.

The Corporation introduced significant reforms during the period, such as Enterprise Risk Management, Differential Premium Assessment Systems (DPAS), built capacity of staff in Risk Based Supervision (RBS) and deployed a new performance management system. The Corporation also extended DIS coverage to Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs). It also reviewed the maximum coverage for different categories of deposit taking financial institutions.

Your Excellency, Honourable Ministers, Your Royal Highnesses, distinguished ladies and gentlemen, the last 10 years of the Corporation was characterised by accelerated institutional growth, robust collaboration with strategic partners in the financial safety net and renewed drive for financial literacy.

To assist in the promotion of the financial inclusion initiative of the CBN, the NDIC introduced the Framework for a Pass-through Deposit Insurance scheme to enhance confidence, safety and stability in the mobile payment system. The scheme caters for the Mobile Money depositors.

In the year 2011, the Corporation established three (3) Bridge Banks to take-over the assets and assume the liabilities of the three (3) failed banks, namely Afribank, Bank PHB and Spring Bank. Polaris Bank was also established in 2018 as a Bridge Bank following the liquidation of Skye Bank.

In order to build a highly skilled human resource to deliver the Corporation’s mandate, the NDIC Academy was established in Abuja in June 2013. The Academy, was accredited as a training hub for the Banking industry by the Council of the Chartered Institute of Bankers of Nigeria (CIBN). There are plans to develop it into a Centre for the Studies of Deposit Insurance in Africa for the benefit of our Sister countries.

In 2017 the Corporation was awarded the best performing Ministerial SERVICOM Unit (MSU) in the country, following an assessment of its public service delivery by SERVICOM Office of the Presidency. Similarly in 2018, the Corporation received International Standard Organization (ISO) certifications in Information Security, Business Continuity and Information Technology Management from the British Standards Institute (BSI). The Corporation is the first government agency in Nigeria to be certified on all the three (3) Standards.

Your Excellences, Honourable Minister, Your Royal Highnesses, distinguished guests, permit me at this juncture to express our profound gratitude to the Honourable Minister of Finance, Budget and National Planning, who, like her predecessors, continued to support and encourage the Corporation in all our endeavours.

In that regard it is very appropriate for me to also acknowledge the invaluable contributions of the pioneer members of the Board and Management of the Corporation ably led by late Alhaji Abdulkadir Ahmed, Governor of CBN for their vision, dedication and selfless service. We also acknowledge selfless service rendered by the pioneer Managing Director/Chief Executive, late Mr. J. U. Ebhodaghe, and other members of Executive Management Professor Wole Adewumi, Mr. Abdullahi Mahmud, Mr Ballama Manu, and their successors ably led by Alhaji G. A. Ogunleye, Professor P. N. Umoh, and late Hajia Fatima Balaraba Ibrahim.

Finally, let me thank our past Boards, especially the immediate past Board ably led by Dr. Hassan Adamu, the Wakili of Adamawa for their immense contributions, and also to appreciate our current Board under the able leadership of Mrs. Ronke Sokefun, for hitting the ground running in less than a year.

Your Excellency, the Vice President, we once more thank you most sincerely for finding time to grace this occasion. This underscores the avowed commitment of President Muhammadu Buhari’s assurance to the protection and development of our banking system which is critical to the success of the Government’s Economic Recovery and Growth Programme. I want to assure you Sir, that we will continue to do our very best to support the laudable economic policies and programmes of the Federal Government.

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