FG tasks NDIC on non-performing loans in banks
The Federal Government has stressed the need for the new board of the Nigerian Deposit Insurance Corporation (NDIC), to urgently address the issues of Non Performing loans in the nation’s banking sector, warning that government is no longer prepared for a repeat of past mistakes.
Vice President, Prof Yemi Osinbajo, who gave the charge, also tasked the board to come up with fresh ideas to produce a more resilient structure involving the NDIC and other relevant stakeholders.
Osinbajo however expressed confidence in the ability of the new NDIC Board and Management to steer the Corporation in the right direction led by Mrs Ronke Sokefun, and Umaru Ibrahim, respectively, to perform; describing her as an experienced lawyer, and the latter an experienced technocrat.
The Vice President made the comment during a courtesy call to his office by the NDIC Board and Management, yesterday, in Abuja, according to a statement.
Osinbajo, while congratulating the Chairman and other members of the Board for their appointment, commended the Management for prioritising the interest of Nigerian depositors in its choice of the Bridge Bank option for the resolution of many banks in liquidation.
He noted that a lot still needs to be done in the area of sanitising the banking system.
On the issue of financial inclusion, the Vice President remarked that it was desirous for millions of poor Nigerians to be empowered through the extension of credit, and called for a sustainable framework to achieve the objectives set by the regulators.
He also decried that the current structure for the operation of Micro-Finance Banks (MFBs) had failed to achieve the desired goals. He therefore tasked the relevant institutions, including the Central Bank of Nigeria (CBN), and NDIC to come up with a framework that would facilitate the funding of federal government social intervention programs such as the N-Power, Trader-Money, and Market-Money, to alleviate the suffering of millions of Nigerians.
Earlier, Sokefun had thanked Osinbajo for his warm reception, and recalled that the NDIC as a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandate of effective supervision of insured banks, timely payment of insured deposits, and the implementation of a robust and efficient failure resolution regime.
She also drew the attention of the Vice-President to the NDIC Amendment Bill, currently before the Senate, and solicited his assistance in ensuring a quick passage of the Bill before the expiration of the present legislative session.
Also commenting, Ibrahim sought Osinbajo’s assistance towards the speedy passage of the Bill, to strengthen the capacity of the Corporation to effectively supervise insured financial institutions for a safe and sound banking system in the country.
He added that the NDIC undertakes periodic examination of banks in collaboration with the CBN, and issues reports with far-reaching recommendations to the boards of banks for compliance to ensure the safety, soundness, and stability of the Nigerian banking system.
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