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Tag: Umaru Ibrahim

  • Umaru solicits for speedy amendment of NDIC Act

    The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has appealed to the 9th Senate of the Federal Republic for the speedy passage of the NDIC Act, 2006 (as amended) currently before the National Assembly.

    The NDIC Boss made the plea when the Management of the Corporation paid a courtesy call on the newly elected President of the Senate, Dr. Ahmed Ibrahim Lawan in his office on Wednesday 26th June 2019.

    This was made in a statement by the Director, Communication & Public Affairs Department of NDIC, Mr. Sunday Oluyemi on Friday.

    According to the statement, “Responding, the Senate President promised that the Senate would immediately commence work on the Bill to Amend the NDIC Act 2006 afresh as the work earlier done by the 8th Senate had lapsed with the expiration of that Assembly.

    “He noted the importance of the Bill and assured the Management of the Corporation that the 9th Senate would give the bill the accelerated consideration it deserved.

    “Earlier, in his opening remarks, the NDIC Managing Director congratulated the Senate President on his election, along with the returning and first time Senators on their victory at the polls.

    “He stated the resolve of the Corporation to work closely with the Senate leadership and the Senate Committee on Banking, Insurance and Other Financial Institutions to ensure a stable banking system which is critical to the stability of the nation’s financial system.

    “He recalled that in the past, the Corporation had worked with the Senate on the Bill to Amend the NDIC Act 2006 through the holding of seminars, workshops and active participation in public hearings, stating that the Senate of the 8th Assembly was unable to pass the Bill unlike the House of Representatives which accorded the process the priority it deserved. He appealed to the Senate, under its present leadership, to pass the Bill in earnest in view of its importance to the stability of the financial system.”

    The statement further added: “The Managing Director /CEO recalled the various challenges facing the economy and observed that only a stable banking system could guarantee the sustainable growth of the economy.

    Read Also: 60% of Nigerians lack access to finance, says NDIC MD

    “He added that the NDIC was working in partnership with the Central Bank of Nigeria (CBN), and other relevant stakeholders through effective supervision and prudential regulation of the banking system.”

    The NDIC Boss enumerated the supervisory challenges facing the Banking System in the last few years including issues related to risk management, corporate governance, non-performing loans, and the need to for more efficient management cyber security systems as well as consumer protection.

    He noted that the Financial Services Regulation and Co-ordinating Committee (FSRCC) comprised of CBN, NDIC, PENCOM SEC, NAICOM and CAC amongst others, would continue to collaborate to ensure financial system stability.

    “The Managing Director /CEO concluded his remarks by reiterating the commitment of the Corporation to the sustenance of excellent relationship with the Senate particularly the distinguished Senators who would be on the Senate Committee on Banking, Insurance and Other Financial Institutions adding that the cordial working relationship was not only crucial to the passage of the amendment of the NDIC, but other important Bills such as the Financial Ombudsman which was intended to provide a quasi-judicial framework for resolving disputes between banks and their customers.

    “While thanking the NDIC Management for the visit, the Senate President noted the importance of the Corporation as an institution that ensured the safety and soundness of the banking system in Nigeria through the protection of depositors and acknowledged that it had done quite well in the discharge of its mandate over the years. He assured the Management that the Senate Committee on Banking, Insurance and Other Financial Institutions, when constituted, would work closely and assiduously with Management to ensure the protection of citizens against adverse activities in the banking sector,” the statement said.

  • NDIC: people responsible for Skye Bank’s collapse won’t go unpunished

    The Nigerian Deposit  Insurance Corporation (NDIC) on Thursday said it has taken measures to ensure that all those who contributed to the failure of the defunct Skye Bank are to be prosecuted.

    Its Managing Director/ Chief Executive Officer, Umaru Ibrahim at NDIC  Special Day at the ongoing  30th Enugu International Trade Fair.

    Represented by  a Deputy Director, Mrs Vera Ogbo_ Ikwue, the NDIC chief  said those who contributed to the failure of the bank would be procecuted through the appropriate legal means to serve a deterrent to others.

    Ibrahim recalled that in the last quarter of last year, the NDIC efficiently managed the resolution of the defunt Sky Bank with the establishment of Polaris Bank.

    Read Also: Ogun Police burst child-stealing syndicate

    He said: “You will recall that in the last quarter of 2018, the NDIC efficiently managed the resolution of the the defunt Sky Bank with the establishment if the Polaris Bank.

    “ The corporation has also taken measures to ensure that all those who contributed to the failure of the bank are prosecuted through the appropriate legal means to serve as a deterrent to others.”

  • FG committed to a stable financial system – NDIC

    The Federal Government is committed to ensuring a stable financial system in the country, Managing Director/Chief Executive Officer, Nigeria Deposit Insurance Corporation, (NDIC), Umaru Ibrahim, has said.

    The NDIC boss stated this during a seminar organised by the corporation for management staff of the Federal Ministry of Finance, in Abuja on Monday.

    Ibrahim stated that the NDIC would collaborate with the finance ministry in order to achieve optimal performance, and ensure the stability of Nigeria’s financial system.

    The MD said that the seminar was apt considering the changes in the nation’s financial system, and the decisive policy actions and reforms often implemented to achieve the desired outcomes.

    Ibrahim said: “The FMF is a core pillar of Nigeria’s Financial Safety-Net as the Guarantor of the Lender-of-Last-Resort. Hence, it is necessary for the FMF to constantly engage in capacity building drive in a bid to upscale and harness the human resource potentials within the Ministry to be able to play the role of formulating and implementing fiscal policy in the economy.

    “This seminar helps in fostering collaboration and knowledge-sharing between the staff of the Federal Ministry of Finance (FMF) and its agencies, in a bid to achieve optimal performance.

    “The mandate of the NDIC is very unique to it. Hence, it is very important that the NDIC educates and enlightens all its stakeholders on its activities.

    “It is therefore a step in the right direction to organize this seminar as an avenue to create proper understanding of its activities by the staff of the FMF that are saddled with the task of supervising it.”

    The Permanent Secretary of the Federal Ministry of Finance, Mahmoud Isa-Dutse, who was represented by the Deputy Director of Home Finance of the Ministry of Finance, Mr. A.F. Ebeda, explained that aside the fact that the workshop is a really good opportunity for members of the FMF to update themselves on what is going on in the financial system, it is also a good platform to collaborate with NDIC to enhance capacity and share ideas.

    He added that that Fintech has humongous potentials to move financial services forward, especially now that the world is galvanizing towards a digitized system of rendering financial services.

  • NDIC Board promises stability of financial system through policies

    Members of the newly inaugurated Board of the Nigeria Deposit Insurance Corporation (NDIC) have stated their commitment to the formulation of sound policies to enhance the safety and stability of the nation’s financial system.

    The Chairman, Mrs. Ronke Shokefun stated this at the opening ceremony of the maiden retreat for members of the Board in Abuja.

    As a critical member of the Nigeria financial safety net, Mrs. Shokefun said the new Board is committed to providing the NDIC with the desired leadership required to enable the nation achieve its goal of becoming one of the top twenty economies in the world by Year 2020.

    Read Also: NDIC remits N7b into Consolidated Account

    According to her, “As people of proven integrity, we are to collectively paddle the boat of NDIC in particular and that of the nation’s banking sector in general to safety.

    “We owe this very important organisation and the nation that duty in order to justify the confidence reposed in us by His Excellency, President Muhammadu Buhari”.

    The Chairman described the role of the Board as critical in the achievement of the Corporation’s mandate, adding that the retreat will enable members gain full insight into the Corporation’s mandate, its operations, achievements and challenges.

    “The induction program will provide the Board with the in-depth knowledge required for the formulation of policies to ensure enhanced service delivery by the Corporation,” she added.

    The NDIC Managing Director/Chief Executive, Umaru Ibrahim expressed hope that the retreat will provide the new Board with the critical information and insight on the activities of the Corporation ahead of their assumption of office.

  • FG to prosecute those responsible for the failure of Skye bank

    The Federal Government has promised to persecute all those found to be responsible for the failure of the erstwhile Skye Bank.
    A statement from the federal ministry of finance issued on Friday evening and signed by the Director of Information Mr. Hassan Dodo said the Minister of Finance, Zainab Ahmed made this known when she a paid a familiarity visit to the Nigerian Deposit Insurance Corporation (NDIC), in Abuja.
     
    According to Dodo, “The minister directed the Managing Director/CEO, Umaru Ibrahim to ensure that a thorough investigation is done into the failure of Skye Bank, adding that at the end of the investigations, all those found culpable in the failure of the bank would be prosecuted.”
     
    “The example of the recently wound-up of Skye Bank, now Polaris Bank is something we would look into. We would find out what happened. Your investigation must be thorough, we are going to hold whoever was responsible for the failure of that bank.”, she said.
     
    “We have to show some examples, we can not just be bailing out banks and leaving perpetrators of the failure of these banks to just go scot-free. Even though you intervene by protecting depositors, but your intervention is limited. You’re not able to payback all that the depositors have. We must show some examples and this is a good one for us to start with”, the Minister said.

    Read Also: CBN revokes Skye Bank’s licence

     
    Ahmed stressed the need for the NDIC to continuously monitor the banks to ensure that problems are detected early and solved before they become crises. 
     
    “The role that you play in monitoring banks should be continuous, because if you capture these issues early, there is a better chance of us protecting these banks, protecting shareholders and depositors”, the Minister said. 
     
    The Minister commended the NDIC for its adherence to the requirements of the fiscal responsibility act by constantly paying its operational surpluses to the Federal Government. 
     
    “I can confirm to you that just within this week, the sum of N15 billion was received by the Federal Government and this brings to about N107 billion that NDIC has paid to date”, she said. 
     
    The Minister said the job of the NDIC of ensuring capital adequacy within the banking system, ensuring profitability, ensuring access to finances are very important for the success of the administration and the economy, adding that the agency should work with the CBN to reduce the number of unbanked citizens.
     
    Earlier in his remarks, the Managing Director/CEO, Umaru Ibrahim briefed the Minister on the achievements and challenges of the Agency. 
     

  • N11.5bn paid to depositors in 2017 – NDIC

    About N11.50 billion has been paid to financial institutions, the Managing Director and Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has revealed.

    The payment, he said, were made to depositors, creditors, shareholders and other stakeholders of closed financial institutions in December, 2017.

    Ibrahim stated these during the NDIC Special Day at the Abuja International Trade Fair with the theme: ‘Enhancing SMEs in Agribusiness through innovative technology’, in partnership with the Abuja Chamber of Commerce and Industry (ACCI), in Abuja, on Tuesday.

    Represented by Director of Enterprise Risk Management, NDIC, Mr. Peter Hyelamzha, he said the corporation had made a 100 per cent and final liquidation dividends to depositors of the defunct Eagle and Financial Merchant Banks (in-liquidation) which increased the number of banks for which a final dividend of 100 per cent had been declared to 16 in 2017.

    He stated that the corporation, in collaboration with the Central Bank of Nigeria (CBN) conducted an on-site and off-site supervisions of 25 Deposit Money Banks (DMBs) and one Non-Interest bank (NIBs).

    The supervision, he said, was extended to 1,008 Micro Finance banks (MFBs) and 38 Primary Mortgage Banks (PMBs) using the Risk Based Supervision (RBS) approach and Consolidated Risk Based Examination of three banks with Holding companies in a bid to ensure financial system stability in the country.

    He said: “The Corporation continued to make strenuous efforts in its debt recovery drive even in the face of all odds. Total recoveries from debtors of failed banks by the NDIC in 2017 amounted to N368.43 million which brought cumulative recovery from debtors to N28.84 billion.

    Read Also: NDIC Boss elected as new Chairperson of IADI

    “Similarly, the sum of N207.45 million was realized from the disposal of physical assets of closed banks. Thus, the cumulative sum of N21.85 billion was realized from the disposal of physical assets of closed banks as at 31st December, 2017. The funds realized was used to pay liquidation dividends to the uninsured depositors of closed banks.”

    “Presently each depositor of Deposit Money Banks (DMBs), Noninterest Banks (NIBs) and Primary Mortgage Banks (PMBs) is insured up to the maximum limit of N500, 000; while the maximum insured coverage for depositors of Micro Finance Banks (MFBs) is N200, 000.

    “However it is important to also stress that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks depending on the quality of their assets and the outcome of debt recoveries by the Corporation.

    “Apart from the DMBs, PMBs and MFBs, the Corporation also provides Deposit Insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the Pass-Through Deposit Insurance Framework in its drive to promote financial inclusion across the broad spectrum of the economy. This followed the licensing of 21 MMOs by the Central Bank of Nigeria (CBN),” he said.

    He further added that: “In order to increase the level of financial inclusion among the 40.1 million Nigerians outside the formal financial system, the NDIC, as a member of the Financial Services Regulation Coordinating Committee (FSRCC), is proactively implementing the National Financial Inclusion Strategy by adopting various public awareness activities such as World Savings Day, promotion of financial literacy among youths in secondary schools, TV and Radio jingles, annual workshop for Business Editors and Finance Correspondents Association of Nigeria etc.”

    The Chairman of the Board of Trustees of the ACCI, Chief Emeka Obegolu, said, “The theme of this year’s trade fair is crafted in pursuant of the Federal Government vision of diversifying our economy from being a mono economy and total dependence on oil to other sectors, most especially the agro business.”

  • NDIC Boss elected as new Chairperson of IADI

    The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has been elected the new Chairperson of the Africa Regional Committee (ARC) of the International Association of Deposit Insurers (IADI).

    The NDIC made this known through a statement by its Head of Communications and Corporate Affairs, Mohammed Kudu Ibrahim.

    According to the statement, “Ibrahim was elected during the Annual General Meeting (AGM) of the IADI-ARC which was a prelude to the IADI Technical Assistance Workshop being hosted by the Corporation in Lagos.

    “The election was a unanimous decision of the body following the expiration of tenure of the current Chairperson and former Chief Executive Officer of the Deposit Protection Corporation of Zimbabwe, Mr John Chikura.

    “Also elected as the ARC Vice-Chairman during the AGM was Mohamud A. Mohamud, the Chief Executive Officer of Kenya Deposit Insurance Corporation (KDIC).”

    Read Also: NDIC to host IADI workshop in Lagos

    The election of Ibrahim marks the second time that Nigeria will lead the IADI-ARC. The immediate past MD/CE of the Corporation, Alhaji Ganiyu Ogunleye was earlier elected as Chairperson of the body.

    It further added that, “According to members, the unanimous decision to elect the NDIC Boss was in recognition of his achievements, requisite knowledge and experience in the Deposit Insurance System (DIS) which they belief will impact positively on the other members from Africa. They expressed optimism in his qualities and wealth of experience to effectively provide the desired leadership for the ARC. With the election of Ibrahim, the secretariat of the body effectively relocates to Nigeria until the end of his tenure.

    “The AGM also discussed other important issues relating to the growth of the DIS in the African Region and financial system stability.

    “Updates from African countries that recently established DIS and as well as those currently in the process of setting up the scheme were also presented at the forum.

    “Apart from Nigeria, the host country, other nations in attendance at the AGM include Ghana, Kenya, Zimbabwe, Uganda, Swaziland, Rwanda and the West Africa Monetary Union Deposit Protection Board (WAMUDPB) based in Senegal.”

    It would be recalled that Umaru Ibrahim was elected twice into the Executive Management Committee of the IADI. His second term is yet to expire.

  • Abuse of ethical standards negatively impacting banking industry – NDIC

    The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, have stressed the need for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the banking industry.

    He made the call during the courtesy visit by the Executive members of the Chartered Institute of Bankers (CIBN) on Monday at its office in Abuja.

    The NDIC Boss in a statement by Mohammed Kudu Ibrahim, its Head of Communications and Public Affairs, decried abuse of extant regulations and ethical standards as negatively impacting on the confidence in the banking industry and the entire financial system in general. He cited the recent involvement of some deposit money banks in illegal forex transfers as a wake-up call for better corporate governance and ethical behaviour by the banks.

    Speaking further, he assured the CIBN President of his resolve to strengthen collaboration with the institute in the enforcement of good corporate governance among banks as well as the promotion of high ethical standards and professionalism.

    Read Also: NDIC builds capacity for Uganda DPFU

    According to him, it is the primary responsibility of regulators to uphold strict compliance with international best practices and ethical standards in order to promote effective risk management and sound corporate governance in the banking industry. This is in line with the Corporation’s drive towards protecting depositors and enhancing public confidence in the financial system.

    The CIBN President, Dr. Uche Olowu attested to the recognition of the NDIC Academy by the International Association of Deposit Insurers (IADI) as a world class institution in providing capacity building for the banking industry.  He said this recognition and the CIBN’s active collaboration with the Corporation to entrench ethical standards is a key driver towards effective service delivery in the industry. He therefore emphasized the need to extend the collaborative efforts to joint research and knowledge-based events to enhance public awareness about the role of deposit insurance in financial system stability.

    Dr. Olowu, who is also the Chairman of Council, stated the active participation of the Corporation in the activities of the council as well as its role in the nation’s economic development informed the Council’s visit to formally invite the NDIC MD/CE as a special guest and resource person at the CIBN 11th Annual Banking and Finance Conference.

  • NERFUND’s missing N17b: Adeosun, Emefiele, others to face panel

    The House of Representatives is set to summon the Minister of Finance, Kemi Adeosun, Governor of Central Bank (CBN), Godwin Emefiele and the Managing Director of the Nigerian Deposit Insurance Corporation (NDIC), Umaru Ibrahim over the collapse of the National Economic Reconstruction Fund (NERFUND).

    Chairman of the Ad hoc Committee on NERFUND, Ayodele Oladimeji said the invitation of the minister and the others became imperative with the discovery that government agencies saddled with the responsibility of disbursing NERFUND’s N17b to Small and Medium Enterprises (SMEs) became culpable in its collapse.

    Speaking before the panel over the weekend, former acting Managing Director, Baba Maina Gimba revealed that for 11 years when he served as the FUND’s Chief Executive, the federal government released only N2b but his major responsibility was the recovery of the N17b disbursed before his appointment in 2002.

    However, rather than disburse the N2b through the participating banks as prescribed by NERFUND establishment Act of the organisation, it was directly disbursed to beneficiaries through poverty alleviation organisations.

    Over 1000 individuals benefited with some getting as low as N200, 000 across the country.

    The ad hoc Committee wondered how NERFUND, established in 1989 with just an office located in Abuja would recover its loans from the illegal beneficiaries scattered around the country.

    The Committee cited two beneficiaries, a former staff, and another, who was a relation of a former Finance Minister between 1999 and 2007, both got N100m each but refused to repay till date.

    While the Committee asked Gimba the reason behind the jettisoning of the prescription of the law on the method of disbursement, he said the Fund was faced with difficulties getting banks to disburse the fund as most of the participating banks were distressed, while others had collapsed.

    “It was difficult for NERFUND to get any bank to disburse the money, coupled with the fact that there was no governing board for the Fund throughout its life span that can give other directives, so we had to disburse through poverty alleviation agencies,” he recalled.

    The former acting MD also countered saying the Act made no provision for the positions of Executive Director and Managing Director.

    The Committee was also told that the then Federal Ministry of Finance Permanent Secretary, who doubled as the Fund’s chairman presided over the disbursement of the N2b, with the Executive Management team left with endorsement of the list from the Finance Ministry.

    Raising some posers, the Committee queried, “Nigerians have to know why the law was set aside by those who should know. How would the Fund recover its direct loans, (which was against the law) from the beneficiaries scattered all over the country, knowing full well that it has no capacity to embark on such misadventure.”

    “We must find all these out. The House is not averse to the closing down of the operations of NERFUND but we have to know why it collapsed so that we can learn from it. How are we sure that what led to the death of NERFUND is not happening to its successors even as we speak,” Oladimeji stressed.

     

     

  • Qualitative education could check violence and insecurity – NDIC boss

    The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has advocated quality education as panacea to check the spate of violence and insecurity challenges currently being experienced in the country.

    The NDIC boss made the remark at the 15th Graduation Ceremony of Zaria Academy, Shika, Kaduna State where a science laboratory built and equipped by the Corporation was formally commissioned as part of its corporate social responsibility initiative.

    While lamenting the upsurge in violent crimes and other challenges of insecurity especially among youths in the country, Ibrahim expressed the belief that the situation could be attributed to poor and weak educational system.

    He therefore called for concerted efforts from all stakeholders to guarantee qualitative education for millions of the nation’s youths to prepare them for gainful employment opportunities and better living conditions.

    Ibrahim urged Nigerians to view the provision of quality education as the responsibility of all, describing complete reliance on government alone for delivery of quality education as unrealistic.

    Read Also: NDIC builds capacity for Uganda DPFU

    He called on the private sector to compliment government efforts, stating that the resources available to government could not provide the type of education required to produce graduates that were not only employable, but also adaptable to the rapidly changing global economy.

    The NDIC boss further said that the Corporation’s acceptance of the request from the Zaria Academy for the construction and equipping of its Science Laboratories which were razed by fire about two years ago was hinged on the pitiable and squalid education situation in the Northern states of the country.

    He expressed delight that the Corporation’s modest intervention largely contributed to the successes of the last two sets of graduates from the academy.

    While noting the low standard of education in the North and the low rate of Senior Secondary School enrolment, Ibrahim called on governors in the region to improve the educational standards of their states and also offer scholarships to bright indigent students.