The House of Representative Committee on Insurance and Actuarial Matters, has said it would be taking a proactive stance in formulating regulatory frameworks and providing support to the Nigeria Deposit Insurance Corporation (NDIC) to effectively safeguard and secure depositors’ funds in Nigeria.
This was stated by the chairman of the committee, Ahmed Usman Jaha, at a retreat organised by NDIC in Lagos on ‘Maintaining a Resilient and Stable Banking System: The Role of NDIC’.
Also, the managing director and chief executive officer NDIC, Bello Hassan noted that the financial indicators affirm the robustness of the banking system, as he reassured depositors in banks protected by NDIC of the safety of their funds.
Jaha noted that with a significant number of new members, comprising over 75 per cent of the committee in the 10th Assembly, there arose a pressing need for these representatives to gain a comprehensive understanding of the intricacies of the insurance sector and that this retreat, would equip members with the knowledge required to contribute meaningfully to the sector’s advancement, particularly in ensuring the safety of depositors’ funds.
He said: “As the chairman of the House Committee on Insurance and Actuarial Matters, I am deeply committed to the advancement and oversight of the insurance and banking sectors in our country.
“I believe that the stability and resilience of our banking system are fundamental to the overall economic well-being of Nigeria. The role of NDIC in safeguarding the interests of depositors, maintaining financial stability, and promoting public confidence in the banking sector cannot be overstated.
“It is therefore imperative that we, as representatives of the people, engage in meaningful discussions and collaborations with the NDIC to ensure the effectiveness of this mandate.
“The committee is first collaborating with the agency and all various agencies that provide some kind of financial safety net in the country and even beyond to make sure that the committee has provided the required legal framework for such regulatory agencies to succeed.
“NDIC as you are all aware, provides the safety of depositors funds and promotes depositors’ confidence in the financial system in the country. So, the committee is ready when given the required knowledge and development, to collaborate with NDIC to make sure that we have succeeded in achieving that.”
Furthermore, on the confidence on the banking sector, he said: “As far as we are concerned and as far as the effort of the NDIC, particularly in trying to protect depositors’ funds and various banks, I am optimistic that we will not have a lot of issues. From my understanding, NDIC is doing everything it takes to protect depositors’ funds in our various financial institutions.”
On his part, Hassan said: “This theme is apt given the determination of the federal government towards achieving sustainable growth by strengthening the financial sector to boost economic growth. This falls in line with the corporations’ contribution to ensuring the stability of the financial system by effectively supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failure.”
Speaking on the sidelines, he added: “The banking system today in Nigeria is safe and sound. I’m saying this not out of sentiment, but looking at the financial soundness indicators, in terms of capital adequacy, the quality of earnings, and the quality of the assets. So I can confidently say that the banking system in Nigeria today as we speak, is safe and sound and depositors can continue to patronise, licensed deposit-taking institutions that are fully insured by the NDIC.”
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