NDIC CEO Commends CBN’s Forex Reforms, Calls for Closer Financial Stability Collaboration

By Angel Ike

The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Thompson Sunday, has praised the Central Bank of Nigeria (CBN) for its reform programs aimed at stabilising the forex market and ongoing capitalisation of Deposit Money Banks.

Sunday made the remarks on Wednesday during a courtesy visit by the new NDIC management team to the CBN Headquarters in Abuja.

He affirmed the NDIC’s commitment to aligning its operations with the NDIC Act 2023 (as amended) and announced plans for a strategic restructuring to better fulfill its risk minimisation mandate,adding that the Corporation is also developing a new corporate strategy, as the current one will expire by year-end.

In a statement, Hawwau Gambo, Head of Communication and Public Affairs at NDIC, said Sunday expressed willingness to collaborate with the CBN in enhancing financial system stability, appreciating the CBN’s support in premium collection from insured institutions.

Sunday highlighted recent NDIC achievements, including the payment of N54.62 billion to 691,418 depositors of the defunct Heritage Bank and declaring a liquidation dividend of 9.2 kobo per naira to uninsured depositors within a year of the bank’s closure, disclosing the ongoing efforts to develop a target funding framework.

He cited challenges such as the lack of a unique identifier like the Bank Verification Number (BVN) for corporate customers and difficulties collecting premiums from insured institutions without CBN accounts.

He expressed NDIC’s readiness to work with the CBN to resolve these issues and appealed for the development of a joint crisis preparedness framework to strengthen crisis management.

CBN Governor, Olayemi Cardoso congratulated the newly appointed NDIC Managing Director and Executive Director of Operations, emphasising the importance of deeper collaboration between the two institutions to safeguard Nigeria’s financial system amid evolving economic challenges.

“Our meeting today is a clear testament to our willingness to work together,” Cardoso said. “The CBN counts on NDIC’s support as we navigate uncertain times.”

He stressed that lessons learned in his two years in office call for proactive efforts between the CBN and NDIC to address potential shocks using modern tools for financial stability.

Rita Sike, CBN Director of Financial Policy and Regulation, noted that the joint crisis preparedness framework could be managed under the Financial Services Regulation Coordinating Committee (FSRCC).

She said the CBN is enhancing its Credit Risk Management System (CRMS) to integrate the Global Standing Instruction (GSI), facilitating onboarding of Other Financial Institutions (OFIs).