The National Assembly through the House of Representatives committee on insurance and actuarial matters has commenced the review of the Nigeria Deposit Insurance Corporation (NDIC) Act for amendment.
Darlington Nwokocha, Chairman House of Representatives Committee on insurance and actuarial matters, disclosed this at the 2021 retreat organised by the NDIC in Lagos, Thursday.
The Corporation was established by Act No. 22 of 1988 (now repealed and replaced with NDIC Act No. 16 of 2006) to administer the explicit deposit insurance scheme to protect depositors and promote public confidence in the nation’s financial system.
“We want to go through the entire NDIC Act to see the ones that are suitable and will suit our immediate environment and at the same time that will meet international best practice and insurance dictates. Anyone we find not suitable, we are going to do the needful by amending it accordingly,” Nwokocha said.
On the timeframe for the completion of the amendment, he said the process of lawmaking takes some time.
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“There are certain factors you meet while amending a particular process or law that may delay it a little bit but I assure you that it will not take too much time”.
He said the essence of the amendment is to find out those things that are not workable and transform them into a better slide.
Ronke Sokefun, chairman, board of the NDIC explained that the Corporation is empowered with comprehensive risk minimisation mandate/powers to provide limited deposit guarantee, deposit reimbursement, complementary supervisory oversights, resolution, and liquidation activities on licensed deposit-taking financial institutions in Nigeria.
Represented by Adewale Adeleke, member of the board of directors said the NDIC is effectively collaborating with relevant stakeholders to effectively manage the risks and ensure that the nation’s banking industry continues to be safe, sound and stable.
Sokefun noted that the Corporation has put in place mechanisms that continually improve the skills of its staff and equip them with relevant tools for effective supervision of risks emerging from FinTech, new technologies and other innovations.
“We recognise and appreciate the fact that the National Assembly is a critical stakeholder in achieving our goals and objectives, and this is why this Retreat is a vital step towards moving the Corporation forward to effectively carry out its operations and ensure the safety and stability of the financial system,” she said.
Welcoming the participants at the retreat, Bello Hassan managing director/CEO, NDIC, said Deposit Insurance System (DIS) safeguards depositors’ funds in case of bank failure, thereby promoting public confidence and contributing to financial system stability.
He said the Corporation is committed to strengthening the deposit insurance framework; providing timely support to insured institutions as and when required; implementing faster, orderly resolutions of problem insured institutions; and assisting the monetary authority in its efforts at promoting stability in the nation’s banking System.
According to him, the NDIC will continue to engage and cooperate with the National Assembly through the House Committee on Insurance and Actuarial Matters to address issues that are germane to the efficient operation of the deposit insurance system in Nigeria and by extension the sustenance of the safety and stability of the nation’s banking industry.
“Through the papers and the discussions that will follow at the retreat, we will not only come up with a roadmap that would enhance the role of the deposit insurance system and the banking industry in the COVID-19 recovery agenda, and also set out a framework for empowering the Corporation to discharge its mandate more effectively through the instrumentality of the National Assembly,” Hassan said.
