Nigeria: Lawmakers Pledge Speedy Passage of NDIC Amendment Bill

21 June 2021

The Chairman, House of Representatives Committee on Insurance and Actuarial Matters, Hon. Darlington Nwokocha, has pledged that the committee's would facilitate a speedy amendment of the Nigeria Deposit Insurance Corporation (NDIC) Bill in order to boost confidence in the Nigerian banking industry and facilitate a robust deposit insurance system in the country.

Nwokocha, made the pledge during the 2021 NDIC retreat for the House committee with the theme, "Fast Tracking Nigeria's Economic Recovery Agenda During and Post COVID-19: The Role of the Regulatory/Supervisory Authorities and the Banks," which held in Lagos at the weekend.

He said the proposed legislation would enable the corporation to keep abreast with the dynamic changes in the financial sector and provide Nigeria with a deposit insurance system that meet global best practices.

"We want to go through the NDIC Act to know those changes that will be good for our country to meet international best practices standard.

"We will amend any aspect that is no longer useful and have become obsolete in order to give the corporation the strength it needs to work.

"Therefore, we are introducing legislation, via the amendment, that would ensure that Nigerian insurance would be driven on a robust platform that will be able to cushion our economy and make us to stand better on the international plank.

"I want to assure you that this committee, with the support of the entire House, will use all the legislative fireworks and instruments to give you the legal framework that will ensure that the insurance, as far as the banking sector is concerned, will be one of the best in the whole world," Nwokocha said.

Speaking during the retreat, the Chairman of the NDIC Board of Directors, Mrs. Ronke Shokefun, told the House Committee that banks were rapidly employing fintech to innovatively deliver financial products and services.

Sokefun, who was represented by Mr. Adewale Adeleke, observed that the nature and scope of banking risks have changed significantly with the growing adoption of fintechs that have opened up new opportunities for the banking system and equally gave rise to additional risks for the banks and regulatory/supervisory authorities.

"These risks have even assumed a larger dimension as the speed of fintech growth accelerated during the COVID-19 due to the need to deliver financial services through technology platforms to minimise human contact.

"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," Shokefun said.

The Managing Director/Chief Executive Officer of the NDIC, Mr. Bello Hassan, in his welcome address said the corporation would continue to work with relevant stakeholders to strengthen the NDIC in a bid to achieve the set public policy objectives and effectively deliver on its core mandate.

Hassan said: "We are committed to strengthening the deposit insurance framework; providing timely support to insured institutions as and when required; implementing faster and orderly resolutions of problem of insured institutions and assisting the monetary authority in its efforts at promoting stability in the nation's banking industry."

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