The success recorded by NDIC can be attributed to the effective collaboration with other safety-net participants in Nigeria, particularly the CBN, the Federal Ministry of Finance and other members of the Financial Services Regulation Coordinating Committee, FSRCC.
The Federal Ministry of Finance is held in some quarters, for example in Nigeria, as a critical safety net participant that oversees the fiscal policy.
The Minister of Finance, Budget & National Planing, Zainab Ahmed stated the above at the International Association Of Deposit Insurers, IADI, Africa Regional Committee, ARC, Workshop with the theme theme: “Normality in Turbulent Periods: The Stabilising Role of Deposit Insurers” hosted by the Nigeria Deposit Insurance Corporation, NDIC, last week in Abuja.
“The Ministry under my watch has implemented a set of difficult but necessary reforms as well as successfully engaged international partners to help the country navigate an extremely challenging economic environment. That to a great deal, in collaboration with the CBN, NDIC and other agencies, explains why the country’s Gross Domestic Product, GDP, rose to 3.54% year-on-year in the second quarter of 2022. The GDP growth marks the seventh consecutive quarter of GDP growth, since the recession recorded in Q3 2020. The Nigerian economy has so far shown signs of resilience in the face of economic headwinds like the conflict between Russia and Ukraine, which affected the global economy”, she said.
Also speaking at the occasion, the Chairman, NDIC, Ronke Sokefun, said, it is worthy of note that the theme of the workshop, “Normality in Turbulent Periods: The Stabilising Role of Deposit Insurers” is no doubt topical in the light of the dynamics and emerging threats facing the financial system in recent times and the implications for Deposit Insurers.
In a world where financial systems are now inextricably linked, robust cooperation is required to ensure financial system stability, and by extension growth and stability of the global economy.
“It is against this backdrop that we need to keep working through forums like the IADI and other collaborating agencies to share experiences, strengthen our supervisory tools, monitor the effectiveness of insured institutions’ Contingency Planning and Crisis Management Framework as well as ensure our readiness for timely, and prompt intervention to engender financial system stability”, she noted.
“It is noteworthy that the NDIC has for a long time since its establishment in 1988 collaborated with other international standard-setters and deposit insurers. For instance, the NDIC has collaborated in capacity development with the IADI itself, the ARC members, the Financial Stability Institute, the US FDIC, the Islamic Financial Services Board and several other international agencies. Also, the Corporation has Memorandum of Understanding, MoU, to share information and on capacity development with deposit insurance agencies of Ghana, Poland, South Korea, Taiwan and Uganda”, she stated.