The Honourable Minister of Finance, Budget and National Planning
The Governor, Central Bank of Nigeria
The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions
The Chairman, House Committee on Insurance and Actuarial Matters
The Secretary General, International Association of Deposit Insurers
The Chairperson, Africa Regional Committee (ARC) of IADI
The Chairman, NDIC Board of Directors
Other Members of ARC EXCO
The Executive Director, Operations, NDIC
The Executive Director, Corporate Services, NDIC
The Board Members of NDIC here Present
The Members of Africa Regional Committee of IADI here Present
The Executive Staff of NDIC
Gentlemen of the Press
Distinguished Ladies and Gentlemen
It gives me great pleasure to welcome you all to the 2022 Edition of the International Association of Deposit Insurers (IADI)-Africa Regional Committee Technical Assistance Workshop, taking place here in Abuja, the capital city of Nigeria. Let me specifically welcome the Honourable Minister of Finance, Budget and National Planning, Dr. (Mrs.) Zainab Shamsuna Ahmed and the Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, CON for making time out to be here this morning, despite their busy schedules. I must also recognise the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Uba Sani, and Chairman, House Committee on Insurance and Actuarial Matters, Mr. Darlington Nwokocha for honouring our invitation. In the same vain, I warmly welcome the International Association of Deposit Insurers (IADI) Secretary General, Mr. David Walker, and the ARC Chairperson Mr. Mohamud, for attending, this year’s Workshop. My special regards also goes to all the CEOs, and other key Management Staff of various deposit insurance agencies here present. You are indeed welcome to Nigeria.
I am also delighted to note that participants at this Workshop are drawn from both African and non-African countries. The participation of Members, Associates and Partners of the IADI; members of the Financial Services Regulation Coordinating Committee (FSRCC) of Nigeria and other virtual participants from all over the world is most welcome in view of the need for effective collaboration amongst safety-net players. The Honorable Minister, Distinguished Guests, Ladies and Gentlemen, the theme for this year’s ARC Workshop which is “Normality in Turbulent Periods: The Stabilizing Role of Deposit Insurance” was carefully chosen, considering the current and emerging developments in the global financial landscape, with a special focus on Africa. Presently, economies globally are stressed, some are still recovering from the impact of COVID-19 pandemic and the spill-over effects of the Russia-Ukraine war. As we are all aware, the fabric of the global financial stability is constantly being threatened by one form of crisis or the other. The potential threats at present, include the Russia-Ukraine war, cyber threats posing increasing risks to financial institutions, slow growth, increasing inflation and tighter global financial conditions which may all exacerbate pre-existing vulnerabilities. Growing financial inter-connectedness has shown that banking crisis can have contagion effects. A system-wide approach to crisis management, involving collaborative efforts of the financial safety-net participants and regional deposit insurance systems is therefore highly imperative.
It is noteworthy that both the 2007 – 09 global financial crisis and the COVID19 pandemic exposed the increasing relevance of deposit insurance in stabilising turbulent banking systems and as buffer for financial system stability. Furthermore, the crises led to the review of some of the design features of explicit deposit insurance system in many countries to
accommodate emerging developments in the domestic and global financial system. This Workshop therefore creates a veritable platform for knowledge and experience-sharing in fulfilling the vision and mission of IADI. I am optimistic that at the end of this Workshop, strategies for system-wide crisis preparedness and resolution options in promoting financial stability in the region would emerge. I consider it appropriate to make a brief remark on the IADI as it commemorates its 20-year anniversary. The Association, which commenced
with 25 members in May 2002, has 92 members as at July 2022, excluding Associates, Observers and Partners. Its mission is “to contribute to the enhancement of deposit insurance effectiveness by promoting guidance and international cooperation” while its vision is to “share deposit insurance expertise with the world”. It has recorded tremendous achievements in enhancing global financial system stability and strengthening financial safety net mechanisms. The ARC of the IADI, established and formed under the auspices of IADI in 2002, currently has 12 Members and 5 Associates.
Distinguished Ladies and Gentlemen, permit me to say a few things on the DIS in Nigeria. The NDIC Act 22 of 1988 repealed and re-enacted in 2006 created the Nigeria Deposit Insurance Corporation (NDIC) as a government agency charged with the responsibility for implementing DIS in Nigeria. As a risk minimizer, the NDIC continues to enjoy close collaboration with other safety net participants in the financial sector, especially the CBN.
In Nigeria, the NDIC provides deposit insurance protection to depositors of:
a) Thirty-three (33) Deposit Money Banks (DMBs) which are made up of Twenty-Four (24) Commercial Banks, Six (6) Merchant Banks and Three (3) Non-Interest Banks (NIBs);
b) 882 Microfinance Banks (MFBs);
c) 34 Primary Mortgage Banks (PMBs);
d) 3 Payment Service Banks (PSBs); and
e) 29 Mobile Money Schemes.
Distinguished participants, the NDIC as one of the resolution authorities in Nigeria, has adopted different resolution mechanisms in resolving the failure of distressed deposit-taking financial institutions in the country. The liquidation activities of the NDIC involved 467 insured banks in-liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs, at end-December 2021.
The successes recorded by the NDIC in the execution of its mandate, would not have been possible without the strong support and collaborative efforts of other financial safety-net players in Nigeria like the CBN, the Federal Ministry of Finance, Budget and National Planning and other members of the FSRCC.
The Corporation is a member of the FSRCC, an inter-agency body set-up to coordinate the supervision of financial institutions and deal with matters of common interest and concern to the various regulatory and supervisory authorities in the Nigerian financial services industry.
At the global level, the NDIC has continuously improved on its collaborative efforts and capacity building in achieving its mandate even in turbulent economic periods. The NDIC had engaged with relevant stakeholders by executing various Memorandum of Understandings (MoU) with other deposit insurance agencies, learning from publications/Guidance Notes of IADI and related institutions, exchange of technical assistance, sponsorship of attachment programmes and training programmes.
Ladies and Gentlemen, it is in appreciation of the fact that deposit insurance is a knowledge-based service that the ARC decided to organise this Workshop to sensitise staff of member-institutions to the issues and challenges of Early Detection & Timely Intervention as well as the Deposit Insurer’s Role in Contingency Planning & Crisis Management. It is hoped that at the end of the Workshop, the participants will be better equipped to discharge their functions as deposit insurers. It should be noted that, competent, well-informed
professional and skilled staff are critical to effective execution of a deposit insurance mandate.
On this note and on behalf of the Board, Management and Staff of the NDIC, I sincerely appreciate the Hon. Minister of Finance, the CBN Governor and all the invited guests for being part of this important event. Let me specifically thank our Resource Persons for honouring our invitation. I also, would like to urge our guests, particularly first-time visitors to Nigeria and Abuja, to make out time and visit the recreational facilities of the city before they leave.
I wish us all, fruitful and insightful deliberations.
Thank you very much for your kind attention.
Nigeria Deposit Insurance Corporation