‘Hands-off day-to-day management of NDIC’ FG tells Board
…Fintech can pose threat to financial stability
The Finance Minister Zainab Ahmed has advised the new board members of the Nigeria Deposit Insurance Corporation (NDIC) not to be involved in the day-to-day running of the corporation.
Zainab Ahmed gave this stern warning to members of the NDIC board when she inaugurated the board in Abuja on Thursday.
According to the finance minister, “the role of the board is not the day-to-day management of the corporation. That is the role of the management.
“So, Mr. Chairman, it is your responsibility to make sure that that delineation is clear, that there are no mix up in the roles and there is no conflict arising there”.
The minister told the newly inaugurated board that “the responsibilities and role of the Board of Directors in an organization are very clear. But for the avoidance of doubt, some of these responsibilities include giving direction, policy formulation, strategic planning as well as oversight to ensure that the organization delivers on its mandate.
“It also ensures the implementation of policies and aspirations of the government, in the area of anti-corruption and revamping the economy, amongst others”.
Zainab Ahmed told the NDIC board members that they “are assuming duty at a time when the Nigerian Financial System is still facing some challenges and requires efforts aimed at addressing issues such as corporate governance, high level of non-performing loans and slide in revenue generation.
She cautioned that “the potential benefits and risks associated with the Financial Technology (Fintech) and block chain technology are also on the front burner.
She stressed that “these and other challenges can cause threats to the stability of our financial system and must be addressed promptly for the sector to play its role in facilitating the implementation of the National Development Plan 2021 to 2025”.
The finance minister stated that the NDIC had since its establishment over three decades ago, remained committed to ensuring its mandate, noting that “the Corporation over the years has performed creditably well and its performance in this regard provides details of bank resolutions undertaken, Merger and Acquisitions and reimbursement to depositors, amongst others”.
Zainab Ahmed described the NDIC as “a component of the nation’s financial safety at the forefront of activities that promote financial system stability through the provision of deposit insurance coverage to depositors of licensed banks.
She added that the NDIC “has been consistent in remitting its 80 percent operating surplus to the Consolidated Revenue Fund (CRF) of the government among many other milestones achieved”.
Responding after his inauguration, the Chairman of NDIC Abdulhakeem Mobolaji Abdulateef said members of the board will try their “best to work very closely with the management that is performing, and we will as board members stay on our lane.
He described as disturbing, “when people don’t know their role and they want to over reach, because we have so much to do, we do not need to do anybody’s job.
Abdulateef assured the minister that the new members of the board “understand the mandate of this Corporation which is deposit guarantee, bank supervision, distress resolution as well as bank liquidation.
“We pray to do our best in line with the interest of the incoming administration to take it from where you have stopped” he said.
