The Chairman, House of Representatives Committee on Insurance and Actuarial Matters, Hon. Darlington Nwokocha has said that one of the ways to improve deposit insurance in the country would be the amendment of the Nigeria Deposit Insurance Corporation (NDIC) Act.
The Act was promulgated in 1988 and re-enacted in 2006, which created the corporation as a government agency, charged with the responsibility for implementing the deposit insurance in the country.
At a retreat organised by NDIC, themed: Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance in Lagos, Nwokocha stressed that the protection of depositors is critical considering the present economy of the country.
He said: “The role of deposit insurance is very key at this moment because we were talking about strengthening; there are too many indices or too many elements.
“There are so many factors that must come together to guarantee such strengthening. And I think one of the core is in the machinery to drive that process will come from the legislature.”
The Chairman, NDIC Board of Directors, Mrs. Ronke Shokefun who welcomed the lawmakers to the retreat, explained that a lot of resources have been deployed along with the use of technology to deepen the financial sector as well as protect depositors from losing their money.
She said the NDIC has continued to work with the Central Bank of Nigeria and other supervisory authorities to reduce fraud and forgeries in the countrry as well as resolve any complaints reported by customers of insured financial institutions.
“As the financial system continues to evolve with advancement in technology, so do the risks facing its users. While the financial sector has leveraged on technology for efficiency and improvement in user experience to improve customers’ satisfaction, the gains have not been without significant costs.” She said.
Also, the Managing Director, NDIC, Mr. Bello Hassan explained that with the ever-changing landscape of the financial environment impacted by new developments and policies, emerging technologies, payment systems and financial services, the Corporation must continue to address the gaps and inherent challenges that threaten the effective implementation of its Mandate.
“Therefore, we remain resolutely committed to strengthening the deposit insurance framework; providing timely support to insured institutions as and when required; implementing faster and orderly resolutions of problem insured institutions; and assisting the monetary authority in its efforts at promoting stability in the nation’s banking system,” he said.
