Post Views: 226 Vice President Yemi Osinbajo has challenged regulators to intensify efforts to sanitise the nation’s banking sector by fashioning a mo...
Vice President Yemi Osinbajo has challenged regulators to intensify efforts to sanitise the nation’s banking sector by fashioning a more resilient structure to enhance its health.
Receiving the new board of the Nigeria Deposit Insurance Corporation (NDIC) last weekend in his office at the State House, Abuja, Vice President noted, for example, that a lot can still be done to sanitize the nation’s banking system and find a last solution to the menace of non-performing loans in the industry.
While challenging the NDIC and Central Bank of Nigeria (CBN) to collaborate on the issue, he warned that the federal government is not prepared to repeat the mistakes of the past.
On the issue of financial inclusion, the Vice President noted the desire for millions of poor Nigerians to be empowered through the extension of credit and urged for a sustainable framework to achieve the objectives set by the regulators.
He also called for concerted efforts by CBN and NDIC to fashion a framework that would facilitate the funding of the Federal Government’s social intervention programmes such as the N-Power, Trader-Money, and Market-Money so as to alleviate the suffering of millions of Nigerians.
Osinbajo who lamented that the current structure for operating Micro-Finance Banks (MFBs) has failed to achieve the desired goals, applauded the NDIC management for adopting the bridge bank option for resolving liquidation in the nation’s banks sector.
By so doing, Osinbajo said the corporation considered the interests of Nigerian depositors, expressing confidence in the ability of the team led by Mrs Ronke Sokefun, whom he described as an experienced lawyer and Umaru Ibrahim- a technocrat, to steer the corporation in the right direction.
Earlier, Sokefun appreciated the Vice President for his warm reception and recalled that the NDIC as a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandatesof effective supervision of the insured banks, timely payment of insured deposits and the implementation of a robust and efficient failure resolution regime.
She solicited for the Vice President’s assistance to ensure the quick passage of the NDIC Amendment Bill currently pending before the Senate before the expiry of the present legislative session.
Joining his voice to the appeal, Ibrahim said a speedy passage the Bill to amend the NDIC Act will strengthen the corporation’s capacity to effectively supervise insured financial institutions and thereby ensure a safe and sound banking system in the country.
According to the statement by Mohammed Kudu Ibrahim, spokesman of the corporation, Ibrahim hinted the Vice President that the NDIC undertakes periodic examination of banks in collaboration with the CBN and issues reports with far reaching recommendations to the boards of banks for compliance to ensure the safety, soundness and stability of the Nigerian banking system.
He also recalled efforts of the regulatory/supervisory authorities to sanitize and strengthen the micro, small and medium scale enterprises (MSMEs), through enhanced capital requirements of MFBs and the establishment of a National Microfinance Bank to enable that subsector play their role of providing credit.
Photo Caption: Vice President Yemi Osinbajo exchanging pleasantries with NDIC Executive Director Operations, Prince Aghatise Erediauwa, while NDIC Board Chairperson, Mrs Ronke Sokefun and other members of the NDIC Board look on, when the Board paid a courtesy visit to the Vice President at the Villa in Abuja.
Also pictured from left to right are: NDIC Board Member Brig. Gen. J. O. J. Okoloagu (rtd), Executive Director Corporate Services, Mrs. Omolola Abiola-Edewor, Board Members, Festus Keyamo and Alhaji Garba Bello; the corporation’s MD/CE, Umaru Ibrahim, other Board Members- Adewale Adeleke, and Mudashiru Mustapha.