The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reaffirmed the apex bank’s commitment to working closely with the Nigeria Deposit Insurance Corporation (NDIC) to strengthen financial system stability amid growing economic uncertainties.
Cardoso made the pledge in Abuja on Tuesday during a courtesy visit by the newly appointed management team of the NDIC, led by its Managing Director/Chief Executive, Mr. Thompson O. Sunday, to the CBN headquarters.
The CBN Governor congratulated Sunday and the new Executive Director, Operations, Dr. Kabir Katata, on their appointments and expressed optimism about deepening institutional synergy between the two financial sector regulators.
“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, while underscoring the importance of collaboration in addressing potential shocks in the financial system.
Reflecting on his two-year tenure, Cardoso noted that the evolving landscape of the financial industry demands proactive measures by both institutions. He stressed the need to adopt modern tools to safeguard depositor confidence and mitigate systemic risks.
In his remarks, NDIC boss Sunday commended the CBN for ongoing reforms, especially efforts at stabilising the foreign exchange market and recapitalising Deposit Money Banks.
He said the NDIC is aligning its operations with the newly amended NDIC Act 2023 and is working on a new corporate strategy as the current framework expires at the end of the year.
Sunday also highlighted key achievements of the NDIC, including the payment of N54.62 billion to 691,418 depositors of the defunct Heritage Bank, and the declaration of a 9.2 kobo per Naira liquidation dividend for uninsured depositors within one year of the bank’s closure.
He raised concerns over challenges hindering the Corporation’s operations, particularly the lack of a unique identifier like the Bank Verification Number (BVN) for corporate account holders and difficulties in collecting insurance premiums from institutions without CBN accounts.
Sunday appealed to the apex bank to jointly develop a crisis preparedness framework that would strengthen financial crisis management in the country.
Responding, Mrs. Rita Sike, Director of the Financial Policy and Regulation Department at the CBN, said such a framework could be developed under the Financial Services Regulation Coordinating Committee (FSRCC).
She also revealed that the CBN was working to enhance the Credit Risk Management System (CRMS) by integrating the Global Standing Instruction (GSI) to onboard Other Financial Institutions (OFIs).
Other members of the NDIC delegation included Mr. Yakubu Shehu, Director of Human Resources; Mr. Olufemi Kushimo, Director of Legal Services; and Mrs. Regina Dimlong, Assistant Director of Communications.
The CBN team also featured officials from the Compliance and Corporate Communications departments.
The meeting ended with a renewed commitment from both regulators to collaborate in protecting Nigeria’s banking sector and maintaining public trust in the financial system.
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