NASS to strengthen regulatory framework on safety of depositors’ funds

The Chairman, House of Representatives Committee on Insurance and Actuarial Matters, Ahmed Usman Jaha, has said the committee will formulate regulations and provide support to the Nigeria Deposit Insurance Corporation (NDIC) to effectively safeguard and secure depositors’ funds.

Jaha disclosed this at a retreat organised by the NDIC to deliberate on the theme ‘Maintaining a Resilient and Stable Banking System: The Role of NDIC’ in Lagos yesterday. 

He noted that with a significant number of new members, comprising over 75 per cent of the committee in the 10th Assembly, it became imperative for the representatives to gain a comprehensive understanding of the intricacies of the insurance sector.

He said the retreat will equip members with the knowledge required to contribute meaningfully to the sector’s advancement, particularly in ensuring the safety of depositors’ funds.

“The stability and resilience of our banking system are fundamental to the overall economic well-being of Nigeria. The role of NDIC in safely guiding the interests of depositors, maintaining financial stability, and promoting public confidence in the banking sector cannot be overstated.

“This retreat provides us with a valuable opportunity to engage in insightful discussions, share knowledge, to gain a deeper understanding of the challenges and opportunities facing the banking and insurance industry.

“By doing so, we can collectively develop informed policies and strategies that will promote a stable, resilient, and inclusive banking system for the benefit of all Nigerians.”

The Managing Director/Chief Executive Officer of NDIC, Bello Hassan, in his address noted that the financial indicators affirm the robustness of the banking system, and reassured that depositors in banks protected by NDIC can have confidence in the safety of their funds.

“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 and depositors can continue to patronise licensed deposit-taking institutions that are fully insured by the NDIC,” Hassan said.