NASS Affirms Commitment to Strengthening Regulatory Framework to Enhance Safety of Depositors’ Funds

•NDIC reassures customers of safety of financial sector

Nume Ekeghe

The Chairman, House of Representative Committee on Insurance and Actuarial Matters, Ahmed Usman Jaha, has restated the federal government’s commitment to preserving financial stability.

He emphasised that the committee would take a proactive stance in formulating regulatory frameworks and providing support to the Nigeria Deposit Insurance Corporation (NDIC) to effectively safeguard and secure depositors’ funds in Nigeria.

This was just the Managing Director/Chief Executive Officer NDIC, Bello Hassan, noted that the financial indicators of the banking industry showed the robustness of the sector.

They made the respective remarks at a retreat organised by the NDIC to deliberate on the theme, ‘Maintaining a Resilient and Stable Banking System: The Role of NDIC,’ in Lagos yesterday.

 Jaha, noted that with a significant number of new members, comprising over 75 per cent of the committee in the 10th Assembly, there was the pressing need for the lawmakers to gain a comprehensive understanding of the intricacies of the insurance sector, adding that the retreat, would equip members with the knowledge required to contribute meaningfully to the sector’s advancement, particularly in ensuring the safety of depositors’ funds.

He explained: “As Chairman of the House Committee on Insurance and Actuarial Matters, I am deeply committed to the advancement and oversight of the insurance and banking sectors in our country. I believe that the stability and resilience of our banking system are fundamental to the overall economic well-being of Nigeria.

“The role of NDIC in safe guarding the interests of depositors, maintaining financial stability, and promoting public confidence in the banking sector cannot be overstated.

“It is therefore imperative that we, as representatives of the people, engage in meaningful discussions and collaborations with the NDIC to ensure the effectiveness of this mandate.

“This retreat provides us with a valuable opportunity to engage in insightful discussions share knowledge, to gain a deeper understanding of the challenges and opportunities facing the banking and insurance industry.

“By doing so, we can collectively develop informed policies and strategies that will promote a stable, resilient, and inclusive banking system for the benefit of all Nigerians.”

 He added: “The committee is first collaborating with the agency and all various agencies that provide some kind of financial safety net in the country and even beyond to make sure that the committee has provided the required legal framework for such regulatory agencies to succeed.

“NDIC as you are all aware provides the safety of depositors funds and promotes depositors’ confidence in the financial system in the country. So, the committee is ready when given the required knowledge and development, to collaborate with NDIC to make sure that we have succeeded in achieving that.”

Speaking further on confidence in the banking sector, he said: “As far as we are concerned and as far as the effort of the NDIC, particularly in trying to protect depositors’ funds and various banks, I am optimistic that we will not have a lot of issues.

“From my understanding, NDIC is doing everything it takes to protect depositors’ funds in our various financial institutions.”

 On his part, Hassan said: “This theme is apt given the determination of the federal government towards achieving sustainable growth by strengthening the financial sector to boost economic growth.

“This falls in line with the corporations’ contribution to ensuring the stability of the financial system by effectively supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failure.”

Speaking on the sidelines of the event, he said: “The banking system today in Nigeria is safe and sound. I’m saying this not out of sentiment, but looking at the financial soundness indicators, in terms of capital adequacy, the quality of earnings, and the quality of the assets.

“So I can confidently say that the banking system in Nigeria today as we speak, is safe and sound and depositors can continue to patronise, licensed deposit-taking institutions that are fully insured by the NDIC.”