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Tag: Nigeria Deposit Insurance Corporation (NDIC)

  • NDIC to host IADI workshop in Lagos

    The Nigeria Deposit Insurance Corporation (NDIC) will host the next edition of the International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual General Meeting and Technical Assistance Workshop.

    This is according to a statement by Mohammed Kudu Ibrahim, Head of Communication & Public Affairs of the Corporation.

    According to the statement: “The event has been scheduled to hold at the Four Points by Sheraton Hotel, Lagos from the 25th – 27th September, 2018, with theme centering on Financial Stability and System-Wide Crisis Preparedness.

    “Participants and resource persons from all across the African continent and beyond have confirmed their participation in the Workshop.”

    The event is expected to provide a forum for information and experience sharing among Deposit Insurance practitioners from multiple jurisdictions to evolve strategies for addressing the potential risks of financial crisis in the global financial system.

    Read Also: Lagos Government recovers N829.11m

    It further added that, “The Secretary-General of IADI, Mr. David Walker will be in attendance, along with the Executive committee members of the IADI African Regional Committee and representatives of West African Monetary Union Deposit Insurance Fund. The Honourable Minister of Finance is expected to declare the workshop open.

    “Apart from providing an effective platform for collaboration in the areas of experience sharing, IADI also enhances the capacity of member agencies through educational programmes, targeted research and guidance on matters relating to Deposit Insurance System among its members.”

    It is worthy of mention that the NDIC is a founding member of IADI. The MD/CE of the Corporation, Umaru Ibrahim, was also elected twice into the IADI Executive Council in 2013 and 2016.

     

  • Akeredolu appeals for adequate funding for universities

    Gov. Oluwarotimi Akeredolu of Ondo State on Friday appealed to stakekeholders and well-meaning Nigerians to help bridge the funding gap of government-owned universities, for sustainable economic development.

    Akeredolu, who was represented by Dr Omowunmi Ilawole, his Special Adviser on Education, made the appeal at the 1st Foundation Day Lecture of the Ondo State University of Science and Technology ( OSUSTECH ) in Okitipupa.

    The lecture was titled: “University Funding and Nation Building: Bridging the Gap between the Gown and the Town.’’

    He explained that the dwindling resources being experienced in Nigeria of recent had made it impossible for government to solely fund university education in the country.

    “If the stakeholders in Education do not support the government in funding university education, it will be impossible to bridge the gap between the gown and the town,” Akeredolu said.

    Meanwhile, the guest lecturer, Dr James Kayode-Naiyeju, blamed the slow pace of development in Nigeria on poor funding of Universities.

    The don said that most developed countries had much stake in funding universities, which he noted, was the panacea to nation-building.

    According to him, Nigeria, as a signatory to the United Nations Educational, Scientific and Cultural Organisation ( UNESCO ), is still unable to meet the organisation’s recommended 26 per cent allocation of the total budget to Education.

    Dr Kayode-Naiyeju, a former Accountant-General of the Federation, said that a country was classified as developed when it is able to provide qualitative life for its citizenry.

    He stated that institutions of higher learning which were the midwives of human-capital development, had tremendous roles to play in nation-building by enriching science, engineering, technology, humanities and the arts, and providing value-based education to students.

    “Universities dedicated to learning, teaching and research are essential building blocks of any civilisation, and are increasingly becoming significant economic institutions.

    “Universities, therefore, need to meet their full economic costs of teaching and conducting research, which include costs of academic and non-academic staff, training of postgraduate research students, equipment, fieldwork and laboratory services.

    “Funding has remained a critical factor in the provision of functional education that can lead to national transformation.

    “Inadequate funding puts university management under stress and strain, leading to rampant crisis in the system, resulting in strikes by academic and non-academic unions,” he said.

    The don, however, said that government should show commitment to budgetary allocation to education, through its agencies like the Tertiary Education Trust Fund ( TETFUND ) and the Nigeria Deposit Insurance Corporation ( NDIC ), among others.

    He also said payment of tuition fees, corporate social responsibility, commercial activities on campuses, commercialisation of accommodation, endowment funds, consultancy services and part-time programmes, were other ways of funding education.

    Earlier, Prof. Sunday Ogunduyile, the Vice-Chancellor, OSUSTECH, said that university funding had been a centre-point of discourse and had yet to be laid to rest.

    He said that the government and stakeholders in the educational sector should brainstorm and come out with a logical conclusion on university funding for the country to stand tall in the comity of nations.

    NAN

  • NDIC cautions Nigerians against transactions in digital currencies

    The Nigeria Deposit Insurance Corporation ( NDIC ) says transactions in digital currencies are not authorised by the Central Bank of Nigeria ( CBN ), cautioning Nigerias against transacting business in bitcoin and other crypto currencies.

    The Manager, Research Department, NDIC, Mr Adikwu Igoche, gave the warning in an interview with the our reporter on Friday at the ongoing 29th Enugu International Trade Fair.

    Bitcoin and other crypto currencies are forms of digital currencies which only exist in some websites and not backed by the country’s law.

    Igoche said that crypto currencies were not deposits or financial instruments authorised by the CBN, adding: “therefore, they are no insured by the corporation.”

    “Again these forms of currencies are not backed by any physical commodity, such as gold or other precious stones.

    “They do not belong to the category of currencies or coins issued by the CBN or the central bank of any other country,” he said.

    According to him, the NDIC will not relent in sensitising Nigerians to financial, operational, legal and security risks they face by patronising ponzi schemes and digital currencies.

    Igoche also urged Nigerians to patronise only banking institutions that displayed the NDIC sticker with the inscription, `insured by NDIC,” in their banking halls or entrances.

    He said a help desk had been created at the NDIC’s stand at the fair where depositors of closed banks could ascertain where and how to access their deposits and process their claims.

    “The corporation also operates a robust 24 hours national help desk with a toll-free telephone line number 080063424357.

    “The desk is for further information and enquires on depositors’ claim settlement and complaints or sharp practices by their banks.

    “The general public can also access our website on www.ndic.gov.ng,’’ he noted.

    The fair is being organised by the Enugu Chamber of Commerce, Industry, Mines and Agriculture ( ECCIMA ) at the fair complex, beside Golf Estate, GRA, Enugu.

    The fair, which has entered its 8th day, has its theme as “Engendering the Competiveness of Nigerian Products in the Global Market.”

    NAN

  • CBN, NDIC push banks to return to Northeast

    CBN, NDIC push banks to return to Northeast

    There are ongoing moves by the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to get commercial banks and microfinance banks return to the troubled North-East region, NDIC Managing Director, Umaru Ibrahim has said.

    Speaking Thursday at the ongoing NDIC Annual Workshop for financial journalists in Kano, Ibrahim, called on the CBN to provide incentives for commercial banks and microfinance banks to come back to the North-east after they closed shops because of the impact of the Boko Haram on their operations.

    He said the Northeast has potentials to support economic growth and should be supported by banks to achieve the desired result. He spoke on the theme: “The Nigerian banking sector: Challenges, opportunities and the way forward.”

    He said: “Many bank CEOs have forgotten the economic potentials that exist in the Northeast. We need to awaken the banks to see the economic potentials in the Northeast. During the next special Bankers’ Committee meeting, the Northeast infrastructural revival will be discussed. The CBN already has planned to rebuild the Northeast,” he said.

    He called on the CBN and other major stakeholders in the financial system to rebuild the financial infrastructure in the troubled North-East region.

    He said the activities of insurgents in the region in the last few years have led to huge damage of financial infrastructure in the region.

    The NDIC boss disclosed that given the crisis in the North-East region, so many businesses have been adversely affected while some investors have moved their investments out of that region.

    He said the rate at which people are being financially excluded in the region has increased due to lack of adequate provision of financial services which was caused by insurgents.

    The NDIC boss said he would personally table the issue to the Bankers’ Committee during their next meeting so that concrete steps could be taken to address the problem.

    To encourage Deposit Money Banks to open more branches in the North-East, he said there was need for the CBN to provide more incentives to banks. He said, “We need to have the government of the North-East on board, they need to be sensitised on this issue.

    “We need more collaboration with the CBN and government of the North-East because without this, not much can be done.

    “It is necessary for the CBN to provide incentives for various banks in order to come back to the North-East because many bank CEOs have forgotten the potentials that exist in this region.”

    In his presentation titled “Rebuilding Financial Infrastructure in the North East”, the Director Development Finance, CBN, Mudashiru Olaitan, lamented the low level of access to the bank’s interventions in the region.

    Olaitan, who was represented by the Deputy Director in the Department, Sani Mohammed said out of the N82 billion that was spent between 2001-2008, no state in the region accessed the apex bank’s interventions.

    “In the commercial agricultural scheme intervention by the CBN, no state in the North-East accessed this intervention except in Taraba and Gombe which have only one each.”So there is need for the region to tap into the interventions,” he added.

  • NDIC trains Ghanaians on Deposit Insurance System

    NDIC trains Ghanaians on Deposit Insurance System

     

    The Nigeria Deposit Insurance Corporation (NDIC) is organising a five-day capacity building programme for senior officials of Ghana Deposit Protection Corporation (GDPC).

    A statement from the NDIC signed by Hadi S. Birchi Head, Communication and Public Affairs said the capacity building programme is part of the NDIC’s efforts to assist member countries in the West African sub region to comprehend the relevance of Deposit Insurance System (DIS) in ensuring financial system stability.

    Three officials of the GDPC who are attending the training programme are: Mr. Franklin Belnye – CEO, Ghana Deposit Protection Corporation; Mrs. Aimee Mwinila-Youri – Legal Department and Mr. Mustapha Sarbeng –  Finance Department

    The modules that are designed for the five-day capacity building programme cover very wide and strategic areas. They include: “Role of DIS in Promoting Financial Stability, Establishment of DIS in Nigeria; Rationale, Governance structure and Core mandate; Design Features of DIS in Nigeria; Legal statutes and Policy Framework for Deposit Insurance System in Nigeria; Determination of Deposit Insurance Coverage; DIS Funding in Nigeria; Risk Assessment of Insured Financial Institutions; Overview of NDIC’s Public Awareness and Financial Literacy and Education Initiative; Asset Management in Failed Bank Resolution and International Collaboration: International Association of Deposit Insurers and other Deposit Insurance Systems Around the World.

    In his remarks about the programme, the pioneer Chief Executive Officer of the Ghana Deposit Protection Corporation (GDPC), Mr Franklin Belnye applauded the achievements of the NDIC and its readiness to provide capacity building and experience sharing on DIS practice across the African sub region.

    Mr. Belnye conceded that unlike the risk minimiser status enjoyed by NDIC, the GDPC was starting as a pay-box due to constraints. He however expressed optimism that there would be urgent need to amend the GDPC enabling law as soon as possible to follow the paths of DIS practice in Nigeria.

    “This is based on the indication of the eye opening learning points on the relevance and independence of a risk minimiser in the financial system than a mere pay box which is tied permanently to either thecentral bank or government for the much needed funding requirements” he added.

    As a Member of the Executive Committee of International Association of Deposit Insurers (IADI), the NDIC has been extending capacity building programmes to member countries in the West African sub region.

     

  • NDIC to lead Africa in deposit insurance

    NDIC to lead Africa in deposit insurance

    The Nigeria Deposit Insurance Corporation (NDIC) is set to lead the African Sub-Region in enhancing capacity building and bridging skills gaps in the banking industry in general and the Deposit Insurance Scheme (DIS) in particular.

    The NDIC’s Managing Director/Chief Executive, Alh. Umaru Ibrahim made this remark during the accreditation ceremony of the NDIC Academy as a training service provider for its staff and the banking industry by the Council of the Chartered Institute of Bankers of Nigeria (CIBN) at the Bankers House, Victoria Island, Lagos.

    Ibrahim said with the NDIC Academy’s new status, it is positioned to fulfil the Corporation’s goal of serving as a center of academic excellence for capacity building on the Deposit Insurance Scheme (DIS) for countries in the Sub-SaharanAfrica. He added that the Corporation prides itself on establishing high standards of professionalism and competency among its staff through the Corporation’s NDIC Academy and other human capital development initiatives, including the Chartered Banker/MBA program of University of Bangor, Scotland in partnership with the CIBN. 

    NDIC’s head, Communication and Public Affairs, H. I. Birch I made this disclosure in a statement yesterday.

    The NDIC CEO emphasized the importance of continuous high level training in order to achieve the Corporation’s core mandates of deposit guarantee, bank supervision, bank distress resolution and bank liquidation. The ultimate goal, he said, would be to enhance depositor protection and public confidence in the banking system.

    In his earlier address, the President and Chairman, Council of CIBN, Prof. Segun Ajibola commended the Corporation for its consistent efforts toward meeting high standards for the benefit of the banking industry and larger economy. Prof. Ajibola described the NDIC’s readiness to subject itself to the rigors of the accreditation process as a testimony of its Management’s commitment towards capacity development in order to equip its workforce with critical skills to enhance their performance and productivity. 

    He said that there would be periodic monitoring to ensure that standards were maintained, adding that the accreditation would last for three years after which the Corporation would require recertification.

  • NDIC academy leads Africa in deposit insurance – MD

    NDIC academy leads Africa in deposit insurance – MD

    The Nigeria Deposit Insurance Corporation (NDIC), is set to lead the African Sub-Region, to enhance capacity building and bridge skills gaps in the banking industry and the Deposit Insurance Scheme (DIS).

    Alhaji Umaru Ibrahim, NDIC’s Managing Director said this in a statement by the Head of Communication and Public Affairs of the commission, Mr Hadi Birchi on Tuesday in Abuja.

    According to the statement, Ibrahim said this at the accreditation of the NDIC Academy as a training service provider for its staff and the banking industry in Lagos.

    The accreditation was done by the Council of the Chartered Institute of Bankers of Nigeria (CIBN) at the Bankers House in Victoria Island.

    Ibrahim said the academy would serve as a centre of academic excellence for capacity building on the DIS for countries in the Sub-Saharan Africa.

    According to Ibrahim, the Corporation prides itself on establishing high standards of professionalism and competency among its staff.

    This, he said NDIC planned to achieve through the NDIC Academy and other human capital development initiatives, including the Chartered Banker/MBA program of University of Bangor, Scotland in partnership with the CIBN.

    Ibrahim emphasised the importance of continuous high level training in order to achieve the Corporation’s core mandates of deposit guarantee, bank supervision, distress resolution and liquidation.

    He said, the ultimate goal will be to enhance depositor protection and public confidence in the banking system.

    Earlier, the President/Chairman, Council of CIBN, Prof. Segun Ajibola commended NDIC’s consistent efforts toward meeting high standards for the benefit of the banking industry and larger economy.

    Ajibola described the NDIC’s readiness to subject itself to the rigours of the accreditation process as a testimony of its Management’s commitment.

    “It shows NDIC’s commitment towards capacity development in order to equip its workforce with critical skills to enhance their performance and productivity.

    “There will be periodic monitoring to ensure that standards were maintained and the accreditation will last for three years after which the Corporation will require recertification,’’ he said.

  • Ignore rumours of financial distress in banks, says NDIC

    Ignore rumours of financial distress in banks, says NDIC

    The Nigeria Deposit Insurance Corporation (NDIC), has called on members of the public to ignore rumours of financial distress in some banks that are being circulated through text messages and social media.

    Such rumours the NDIC said are designed to “de market those banks and destabilise depositors’ confidence in the banking system.”

    A statement from the NDIC said the Managing Director/Chief Executive of NDIC Alhaji Ibrahim Umaru made this call during a courtesy call on the Corporation at the NDIC head office in Abuja by the Executive Members of the Alumni Association of the National Institute (AANI), Abuja chapter led by its Chairman, Arc. Bola A. Balogun.

    The NDIC boss noted that “the Corporation had over the years played a very critical role towards ensuring that banks were safe and sound through effective supervision of the banks, financial and technical assistance to deserving financial institutions and adoption of timely failure resolution options to problem banks.

    Alhaji Ibrahim said “the Corporation, since its inception, had continued to closely monitor the challenges affecting the banking industry such as poor corporate governance, insider loans and non-performing loans in order to further safeguard depositors’ interest in the banking system.”

    He added that with the NDIC’s strict supervision and regulation of the banking industry in collaboration with the CBN, depositors should have full confidence in the safety and security of their funds in the licensed banks.

    He further said that the NDIC “had enhanced the effectiveness of its mandate as well as its vast experience in the complex exercise of failure resolution and sought to share the experience through documentation and publication of the failure resolution of twenty (20) cases of failed insured Deposit Money Banks (DMBs) in five (5) volumes.”

    The compendium, he revealed, will highlight key lessons learnt by the Corporation in the exercise in order to prepare itself for the future.

    In line with the Corporation’s efforts toward promoting financial literacy, the MD said the Corporation in collaboration with other stakeholders is proposing the establishment of a Centre for Financial and Economics Studies at the National Institute for Policy and Strategic Studies (NIPPS), Kuru to train participants in essential areas of financial and economic management.

    In his response, the Chairman of AANI Abuja Chapter, Arc. Bola A. Balogun,commended the NDIC for its supervisory role which he described as an invaluable anchor for the security and stability of the nation’s financial system. He also praised the Corporation’s efforts toward protection of depositors’ fundsand consumer protection activities.

     

  • NDIC restates stability in financial sector

    NDIC restates stability in financial sector

    The Nigeria Deposit Insurance Corporation (NDIC) on Friday restated its commitment to ensuring financial system stability in the country.

    Mr Adedapo Adeleke, it’s Director of Banking Examination Department, reaffirmed the commitment at the ongoing workshop for financial correspondents in Kaduna.

    Adeleke, who delivered a paper on “Refocusing Banking Supervision in Nigeria in an Era of Economic Recession”, said that it was imperative for the country to do the needful to come out of recession.

    According to him, NDIC and the Central Bank of Nigeria (CBN) are relaxing some prudential requirements used to regulate the banks and directly intervening in needing institutions.

    He said that this was the focus of some counter-cyclical measures considered appropriate to guarantee financial system stability given the magnitude of macro-economic stress.

    The NDIC director said that some of the proactive measures being implemented by the supervisory authorities were to decouple financial conglomerates, known as universal banks, and this had helped to reduce the contagion of risk.

    Adeleke said that other measures included capital adequacy ratio which the regulatory authorities set above the Basel Committee thresholds of eight per cent and 10 per cent to16 per cent.

    According to him, this has created default capital buffer and therefore serves as allowance during the period of stress.

    Another measure, he said, was stress testing which banks had been put through various capital and liquidity tests which included computation of requirements under Basel II.

    Adeleke said the risk supervision measure was taken by the authorities as a safety net to guarantee depositors for redemption.

    He promised that the NDIC would continue to take measures to boost confidence in the financial system.

  • Buhari seeks re-appointment of Ibrahim as NDIC MD

    Buhari seeks re-appointment of Ibrahim as NDIC MD

    President Muhammadu Buhari Tuesday asked the Senate to confirm Umaru Ibrahim for re-appointment as Managing Director, Nigeria Deposit Insurance Corporation (NDIC).

    This is contained in a letter of request for confirmation of appointment of the Managing Director, Nigeria Deposit Insurance Corporation President Buhari sent to the Senate.

    The letter was read by the Senate President, Abubakar Bukola Saraki.

    The President said that the letter was in accordance with the provisions of Section 5(4) and 8(3) of the Nigeria Deposit Insurance Corporation Act, CAP. N102 laws of the Federation of Nigeria, 2004.