The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have reaffirmed their commitment to strengthening collaboration aimed at ensuring stability in the country’s financial system.

This renewed commitment was made during a courtesy visit by the newly-appointed Managing Director/Chief Executive of NDIC, Mr. Thompson O. Sunday, and his management team to the CBN Headquarters in Abuja.

CBN Governor, Mr. Olayemi Cardoso, congratulated Mr. Sunday and the new Executive Director of Operations, Dr. Kabir Katata, on their appointments and expressed optimism about deepening ties between the two institutions.

“Our meeting today is a clear testament to our willingness to work together. The CBN counts on NDIC’s support in navigating the uncertain times that we are in,” Cardoso said.

He emphasized that his two years in office have brought critical insights into the financial sector, underscoring the need for proactive collaboration between the CBN and NDIC in managing potential risks and maintaining depositor confidence.

Mr. Cardoso welcomed NDIC’s visit, describing it as timely and essential to strengthening joint efforts in financial sector oversight, especially in the face of evolving economic challenges.

In his remarks, Mr. Sunday commended the CBN’s reform initiatives under Governor Cardoso, particularly in stabilizing the foreign exchange market and implementing the recapitalization of Deposit Money Banks.

He reiterated NDIC’s commitment to aligning its operations with the NDIC Act 2023 (as amended), noting that the Corporation was undergoing a strategic restructuring and developing a new corporate strategy to enhance its risk minimization mandate.

The NDIC boss highlighted recent achievements, including the payment of ₦54.62 billion to 691,418 depositors of the defunct Heritage Bank, and the declaration of a 9.2 kobo per naira liquidation dividend to uninsured depositors within a year of the bank’s closure.

He also disclosed ongoing efforts to establish a target funding framework.

Mr. Sunday pointed out some operational challenges, such as the lack of a unique identifier like the Bank Verification Number (BVN) for corporate customers and difficulties in collecting premiums from insured institutions that do not maintain accounts with the CBN.

He expressed NDIC’s readiness to collaborate with the apex bank to resolve these issues.

He also called on the CBN to partner with the Corporation in developing a joint crisis preparedness framework to enhance coordinated responses to future financial sector crises.

In response, Mrs. Rita Sike, Director of Financial Policy and Regulation at the CBN, noted that such a framework could be developed under the Financial Services Regulation Coordinating Committee (FSRCC).

She also revealed ongoing efforts to upgrade the Credit Risk Management System (CRMS) to incorporate the Global Standing Instruction (GSI) for onboarding Other Financial Institutions (OFIs).

Hawwau Gambo, Head of Communication & Public Affairs said the NDIC delegation included Dr. Kabir Katata, Executive Director, Operations; Mr. Yakubu Shehu, Director, Human Resources; Mr. Olufemi Kushimo, Director, Legal Department; and Mrs. Regina Dimlong, Assistant Director, Communications and Public Affairs.

On the CBN side, key officials present included Mrs. Rita Sike; Mr. Nnadi Maduka of the Corporate Communications Department; and Mrs. Salamatu Jubril-Adeniji of the Compliance Department.

Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).