NDIC commemorate its 30th Anniversary; Highlights roles in financial stability

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The public policy objectives of the Corporation are to contribute to financial system stability as well as to protect small and less financially sophisticated depositors by providing an orderly means of resolution and compensation in the unlikely event of failure of their insured financial institutions.

The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim at a press conference to kick-start events scheduled to commemorate the 30th anniversary of the Corporation on Friday 18th October, 2019 at the NDIC head office, Abuja said in NDIC, this is an opportunity to look back and trace our journey over time and shine the light on the extent to which the Corporation has contributed to Financial System Stability in Nigeria.

 

Umaru said commemoration of our 30th Anniversary provides an excellent opportunity to undertake a comprehensive review of our past legacies and a platform to fine-tune our Vision and Mission. It also enables us to cast a searchlight on the future, particularly the challenges and Opportunities.

 

He noted that NDIC was established in March 1989 following the promulgation of Decree No. 22 of 1988, now replaced with NDIC Act 16 of 2006. The public policy objectives of the Corporation are to contribute to financial system stability as well as to protect small and less financially sophisticated depositors by providing an orderly means of resolution and compensation in the unlikely event of failure of their insured financial institutions.

 

“The Corporation was established to provide a further layer of protection to depositors and complement the role of prudent bank management as well as the Central Bank of Nigeria (CBN) supervisory activities in ensuring a safe and sound banking system

 

.In the past 30 years, Umaru pointed out that NDIC exhibited a strong determination to maintain a high level of professionalism and excellence in its operations. The Corporation had gone through a series of structural and operational reforms necessary to align its activities with global best practices and also give the right impetus to the realisation of its mandate. With the reforms, the Corporation has been able to institute Systems, Processes and Procedures that makes it operationally ready to effectively discharge its mandate.

 

“To build a robust skilled Human Resource Base to deliver the Corporation’s mandate, the NDIC Academy was established and commissioned in June 2013. The NDIC’s Academy, was recently accredited as a Training hub for the financial services industry by the Council of the Chartered Institute of Bankers of Nigeria (CIBN) after a rigorous accreditation process. By that certification, the Academy is poised to fulfil the goal of serving as a ‘’Centre of Excellence’’ on DIS for sister Agencies in Africa.

He reiterated that in the past 30 years, the Corporation adopted several innovations to enhance internal control and strengthen its processes and procedures. They include sound Risk Management Framework leading to the establishment of Enterprise Risk Management Department, adoption of Sustainable Banking Principles in its operations, Zero-Based budgeting and many other operational systems in line with International best practices.

 

In 2011, Umaru added that the Corporation articulated a Strategic Plan (2011 – 2015), now reviewed and replaced with 2016 – 2020 Strategic Plan. The 5-year plan is designed in line with the Balanced Scorecard Performance Management System aimed at achieving its mandate through four key perspectives, namely: Stakeholders’ Satisfaction, Process Improvement, Financial Planning and Organisational Learning and Growth. The discharge of the NDIC’s mandate has been within the context of this articulated plan, which is based on four thrusts of Operational Readiness; a Culture of Continuous Performance Management; Strategic Partnering and Collaboration, and Promoting Public Confidence on Deposit Insurance System (DIS). The Strategic Plan ultimately guides the setting of corporate objectives and the allocation of resources in the Corporation, he noted.

 

“The NDIC has done a lot in the areas of promoting financial literacy and consumers’ protection in the system. For example, the NDIC has published several books including two (2) story books (“The Little Piggy” for Nursery and Primary schools and “The Money Tree” for junior secondary schools). The NDIC adopted the “Catch Them Young” approach in Financial Education to instil the right values, attitudes and perceptions towards financial management in children and youth.

 

“Also, the NDIC established a 24-Hour Enterprise Help-Desk with the toll free number 080063424357 to facilitate interactions with its stakeholders. The Corporation promotes its online presence through its website www.ndic.gov.ng as well as its social media platforms on Facebook, Instagram, Twitter and Linked-in to further deepen and expand engagement with depositors and other stakeholders in the digital space. The NDIC has introduced DIS Courses in Nigerian Universities and is in Partnership and Collaboration with stakeholders so as to foster effective working relationship to further enhance Depositors and Consumers protection in the banking system.

 

“Annually, the Corporation Sponsors Capacity Building for PMBs and MFBs Operators in areas of “Moveable Collaterals”, Enterprise Risk Management as well as Assets & Liabilities Management (ALM).

Umaru affirmed that the NDIC is involved in several International Exchange and Cooperation Activities, geared towards effective experience-sharing and capacity building with Local and International partners, since its establishment. According to him, the Corporation is a co-founder of the esteemed International Association of Deposit Insurers (IADI) and serves as the current Chair of IADI’s Africa Regional Committee (ARC) adding that the NDIC participates at several IADI Executive Council (EXCO) Meetings and Conferences as well as provides Technical Assistance to other African deposit insurance agencies.

 

“In 2017, the Corporation was awarded the best performing Ministerial SERVICOM Unit (MSU) in the country, following an assessment of its public service delivery by SERVICOM Office in the Presidency. The rejuvenated system and procedure led to three best-practice standards awarded to the NDIC by the British Standards Institution (BSI) in IT Business: IT Service Management System (ISO 20000), IT Security Management (ISO 2701) and Business Continuity Management (ISO2301) in 2018. NDIC thus became the first public institution in the country to be certified with all three ISO certifications simultaneously

 

“A recent commendable event is the hosting of the 2018 IADI-Africa Regional Committee (ARC) Technical Workshop by the NDIC.

 

Over the years, MD/CEO noted that the Corporation confronted and successfully resolved many challenges. Such challenges include lack of enforcement powers; protracted litigation initiated by owners of closed banks; recovery of debts owed failed banks, inadequate public awareness, amongst others. Our proposed solutions to these are contained in our proposed amendment to the NDIC Act, 2006.

 

“In light of the foregoing, it is gratifying that in 30 Years since its establishment, the Corporation has fulfilled the public policy objectives for which it was established. Therefore, the Corporation has lined up a series of activities to celebrate its remarkable achievements in the past 30 years as well as give honour to its founders who have left a legacy of Excellence in service and commitment to the stability of the financial system.

 

“Consequently, one of our four themes for the execution of NDIC’s strategic objectives is “creating the desired public awareness for the implementation of the Deposit Insurance System (DIS) in Nigeria”.


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