CBN, NDIC Pledge Deeper Collaboration To Safeguard Financial System

The Governor, Central Bank of Nigeria, CBN, Mr. Olayemi Cardoso, has congratulated the newly appointed Managing Director/Chief Executive Officer of the Nigeria Deposit Insurance Corporation, NDIC, Mr. Thompson Sunday and the Executive Director Operations, Dr. Kabir Katata, on their appointments.

The CBN Governor expressed optimism for stronger collaboration between the two institutions during a courtesy visit by the NDIC management team to the CBN headquarters in Abuja.

Cardoso described the visit as a reaffirmation of both institutions’ shared commitment to financial system stability, particularly in the face of current economic uncertainties.

“The CBN counts on NDIC’s support in navigating the uncertain times that we are in,” he said, stressing that his tenure had revealed the importance of proactively addressing potential shocks using modern financial stability tools.

In his remarks, Mr. Sunday commended the CBN’s reforms, especially in stabilizing the foreign exchange market and the ongoing recapitalization of Deposit Money Banks.

He disclosed that the NDIC was restructuring its operations and developing a new corporate strategy aligned with its risk minimization mandate and the amended NDIC Act 2023.

Mr. Sunday also highlighted recent milestones including the payment of N54.62 billion to over 691,000 depositors of the defunct Heritage Bank and the declaration of a liquidation dividend for uninsured depositors.

He noted challenges such as the absence of Bank Verification Numbers, BVN, for corporate clients and appealed for a joint crisis preparedness framework with the CBN.

In response, Mrs. Rita Sike, Director of Financial Policy and Regulation at the CBN, stated that the proposal could be addressed under the Financial Services Regulation Coordinating Committee, FSRCC, adding that the CBN was enhancing the Credit Risk Management System, CRMS, to integrate other Financial Institutions, OFIs, via the Global Standing Instruction, GSI.

Umbwanko Baba, Edited By Grace Namiji