Reps promise legal backing as NDIC protects depositors’ funds

The House of Representatives Committee on Insurance and Actuarial Matters on Wednesday promised to provide the required legal framework for regulatory agencies, such as the Nigeria Deposit Insurance Corporation (NDIC) to succeed in their responsibilities.

Ahmed Usman Jaha, made this known in Lagos at a stakeholder [JB1] retreat organised by the NDIC to deliberate on the theme ‘Maintaining a resilient and stable banking system: The role of NDIC’.

Jaha highlighted the committee’s proactive approach to formulating regulatory frameworks and providing support to the NDIC, ensuring the effective safeguarding of depositors’ funds in Nigeria.

Bello Hassan, managing director/CEO at NDIC, echoed the sentiment, citing robust financial indicators that affirm the strength of the banking system. He reassured depositors, stating that they could have confidence in the safety of their funds.

Jaha, recognising the need for new committee members to understand the intricacies of the insurance sector, emphasised the retreat’s role in equipping representatives with the necessary knowledge. He stated, “The stability and resilience of our banking system are fundamental to the overall economic well-being of Nigeria.”

He further emphasised the committee’s commitment to collaborating with regulatory agencies, including NDIC, to provide the required legal framework for their success. Jaha expressed optimism about the NDIC’s efforts in protecting depositors’ funds.

In response, Hassan reiterated the corporation’s commitment to ensuring sustainable growth by strengthening the financial sector. He pointed out the soundness of the banking system in Nigeria based on financial indicators such as capital adequacy, earnings quality, and asset quality.

Jaha and Hassan underscored the importance of collaborative efforts between regulatory bodies and the government to promote a stable, resilient, and inclusive banking system for the benefit of all Nigerians.

“We have invigorated our liquidation activities, and greatly increased debt recovery rate leading to the declaration of 100 per cent liquidation dividends to uninsured depositors of over 20 deposit money banks in-liquidation as well as payments to other stakeholders such as creditors, ex-staff and shareholders; and we have also improved our system, process and procedures to promote transparency and accountability in our operations, amongst other humble achievements,” Hassan said.

Speaking further, he said, “Indeed, the corporation recorded unprecedented success in its reimbursement efforts during the recent closure of 179 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by ensuring the payment of depositors within seven days of closure. Additionally, digital remote payment strategies were also deployed to ensure that payments to verified depositors were electronically transferred to their alternate bank accounts.