The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has called for continued synergy with the Nigeria Deposit Insurance Corporation (NDIC) towards safeguarding Nigeria’s financial system, amidst evolving economic challenges.
He made the call while congratulating the new NDIC board on their appointments and expressed optimism about deepening collaboration between the two institutions.
Speaking on Wednesday at the CBN Headquarters in Abuja during a courtesy call by the newly appointed management of the NDIC, led by the Managing Director, Mr Thompson Sunday, Mr Cardoso said, “Our meeting today is a clear testament to our willingness to work together. The CBN counts on NDIC’s support in navigating the uncertain times that we are in.”
He reiterated that the visit underscored the shared commitment of both institutions to strengthen collaboration towards safeguarding Nigeria’s financial system, amidst evolving economic challenges.
Mr Cardoso averred that his two years in office had revealed critical lessons in the financial industry, requiring that the CBN and the NDIC proactively deal with potential shocks by leveraging modern tools for financial stability.
He described the NDIC’s visit as timely, urging both institutions to work closely in mitigating risks and ensuring depositor confidence.
On his part, the NDIC Managing Director commended the apex bank for its reform programmes under the leadership of Mr Cardoso, particularly the stabilization of the forex market as well as the ongoing recapitalization of Deposit Money Banks.
He stated that the NDIC was committed to aligning its operations with the NDIC Act 2023 (as amended), explaining that the Corporation was in the process of embarking on a strategic restructuring to better align operations with its risk minimization mandate as well as developing a new corporate strategy as the one in use was due to expire at the end of the current year.
Mr Sunday reiterated the NDIC’s willingness to collaborate with the CBN towards enhancing financial system stability, expressing appreciation for the CBN’s support in premium collection from insured institutions.
On her part, the CBN Director of Financial Policy and Regulation Department, Mrs Rita Sike, noted that the joint crisis preparedness framework could be dealt with under the auspices of the Financial Services Regulation Coordinating Committee (FSRCC).
She explained that the CBN was in the process of enhancing the Credit Risk Management System (CRMS) to integrate the Global Standing Instruction (GSI), which will allow for the on-boarding of Other Financial Institutions (OFIs).