NDIC Assures Nigeria’s Banking System is Safe, Sound

12 Oct NDIC Assures Nigeria’s Banking System is Safe, Sound

The National Deposit Insurance Corporation (NDIC) has declared that despite the devastating effects of the COVID-19 pandemic and other challenges, Nigeria’s banking system remains safe and sound.

Managing Director and Chief Executive of NDIC, Mr. Bello Hasan, stated this in Abeokuta, Ogun State, yesterday, at a workshop for officers from legal departments of financial regulatory agencies, banking supervision department and law enforcement agencies.

Hassan stated, “We know that we are passing through several unprecedented challenges in the industry. But despite these, the regulatory agencies are taking various measures to ensure that banks remain safe and sound.

“According to report, despite the effects of the pandemic and looking at the various financial standing indicators, the banking system is safe and sound.

“Looking at capitalisation, the earnings and liquidity I can confidently say base on these financial standing indicators, the Nigeria banking system is safe and sound and resilient.”

The NDIC boss said the corporation had begun payment of compensation to customers of 42 banks, whose licences were withdrawn by the Central Bank of Nigeria (CBN), last year.

He said, “The 42 banks that CBN withdrew their licences last year, we have already paid the insured amount and we are working hard to realise the assets of those liquidated institutions so that we can pay depositors of those failed institutions. The customers are still coming forward to be paid.”

To check alleged insider abuse and involvement in fraud and robbery incidents, Bello advised banks to take measures right from the time they are employing their staff.

“Banks should strengthen their security, they should do a proper control and do a lot of background checks on their staff to ensure that they employ people that are fit and proper for employment,” he added.

In his goodwill message, Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, explained that the directive to bankers to declare their assets was not to witch-hunt them, but to save Nigeria from another serious crisis in the banking sector.