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NDIC, CBN Strengthen Collaboration for Financial System Stability

The newly appointed Management of the Nigeria Deposit Insurance Corporation (NDIC) recently paid a courtesy visit to the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, at the CBN Headquarters in Abuja.

The visit underscored the shared commitment of both institutions to strengthen collaboration towards safeguarding Nigeria’s financial system, amidst evolving economic challenges.

During the meeting, Governor Cardoso congratulated the new Managing Director and Executive Director Operations of the NDIC on their appointments and expressed optimism about deepening collaboration between the two institutions.

He emphasized that the CBN counts on NDIC’s support in navigating the uncertain times that Nigeria is currently facing.

The NDIC MD/CE, Thompson Oludare Sunday, commended the CBN for its reform programmes under the leadership of Cardoso, particularly the stabilization of the forex market as well as the ongoing recapitalization of Deposit Money Banks.

He reiterated the NDIC’s willingness to collaborate with the CBN towards enhancing financial system stability.

The NDIC Chief Executive outlined the Corporation’s recent milestones, including the payment of N54.62 billion to 691,418 depositors of the defunct Heritage Bank, and the declaration of a liquidation dividend of 9.2 kobo per Naira to uninsured depositors within a year of closure.

He also highlighted the ongoing efforts to develop a target funding framework.

However, Sunday also listed some challenges facing the Corporation, including the absence of a unique identifier such as the Bank Verification Number (BVN) for corporate customers and the difficulty in collecting premiums from insured institutions that do not maintain accounts with the CBN.

He expressed the willingness of the Corporation to work with the CBN to address these gaps.

The NDIC Managing Director appealed to the CBN to consider developing a joint crisis preparedness framework with the Corporation towards enhancing crisis management.

Rita Sike, the CBN Director of Financial Policy and Regulation Department, responded that the joint crisis preparedness framework could be dealt with under the auspices of the Financial Services Regulation Coordinating Committee (FSRCC).

The meeting highlighted the commitment of both institutions to work together in ensuring the stability of Nigeria’s financial system.

The NDIC team included the Executive Director, Operations, Dr. Kabir Katata, and other senior officials, while the CBN team was led by Rita Sike, Director of Financial Policy and Regulation Department.

The visit by the NDIC Management to the CBN Governor re-affirms the commitment of both institutions to financial system stability.

The discussions highlighted the importance of collaboration and the need for both institutions to work together in addressing the challenges facing the financial sector.

With the NDIC’s willingness to work with the CBN, Nigeria’s financial system is expected to become more stable and secure.

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