NDIC Wants Strict Sanctions for Non-performing Insider Loans

The Nigeria Deposit Insurance Corporation (NDIC) said it is concerned about the increasing figure of non-performing insider loans in banks and directed banks to impose strict sanctions on defaulters.

This is contained in a statement issued yesterday in Abuja by the Head, Communication and Public Affairs of NDIC, Mr. Hadi Birchi.

It quoted Alhaji Umaru Ibrahim, the Managing Director, NDIC, as expressing the concern when the newly elected President, Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, visited him in Abuja.

According to Ibrahim, the development had posed credibility questions which were capable of eroding public confidence in the banking system.

He called for strict compliance with the existing code of conduct and a review of the existing laws to provide stiffer penalties for directors of banks who are guilty of the act.

The NDIC boss also decried the casualisation of workers in the banking industry, adding that the development has a negative impact on the system.

According to him, casual staff accounted for about 25 per cent of the banking industry workforce.

He noted with concern the practice whereby some banks assigned sensitive roles to casual staff; thereby exposing the banking industry to cases of fraud and forgeries.

Speaking on the recent staff rationalisation embarked upon by banks, Ibrahim enjoined the banks to exercise caution so as not to create industrial unrest in the industry.

He therefore called on the CIBN to intervene by advising its members on the aim of the rationalisation, which should be to weed out bad eggs from the industry.

According to the News Agency of Nigeria (NAN), Ibrahim said the corporation would continue to partner with the CIBN and other professional bodies towards achieving effective capacity building among its staff. The NDIC boss also disclosed that 77 members of its staff were currently undergoing the Bangor/CB MBA programme which commenced three years ago.

“The Bangor/CB MBA programme is an initiative of the NDIC, the CIBN and the Bangor University, Scotland, where staff of the corporation undergo up to 24 months training programme.

“They graduate with dual certification, an MBA and Chartered Banker of Scotland, and 14 members of staff have already graduated from the programme,’’ he said.

Ibrahim urged CIBN to fast track the accreditation of the Corporation’s Training Academy and the introduction of the Deposit Insurance System (DIS) in the institute’s curricula to broaden professionalism in the industry.

The CIBN President had earlier appreciated the corporation for its positive contributions to the activities and programmes of the institute.

He commended NDIC for its support towards the establishment of the CIBN Bankers House in Abuja and for its contribution in ensuring stability in the banking system. Ajibola assured Ibrahim that the accreditation committee of the institute would soon visit the NDIC Academy.

He appealed to the NDIC boss to further collaborate with the institute on training and other issues of mutual interest.

On staff casualisation in the industry, Ajibola pledged to table the matter at CIBN’s next meeting with banks’ CEOs with a view to addressing the issues.

He also stated that efforts were being put in place by the CIBN to enhance the capacity of bank staff, particularly in credit administration.