The Nigeria Deposit Insurance Corporation (NDIC) has said that the threat of recession, increased national debt and non-performing loans in the country are pressuring regulators to reassess their supervisory activities.
The NDIC Managing Director, Alhaji Umaru Ibrahim, said this at the 2020 workshop for Finance Correspondents Association of Nigeria (FICAN) in Lagos, yesterday.
Ibrahim said that the developments had prompted the need for regulators such as the NDIC to strengthen their capability to address the challenges and forestall a financial crisis.
According to him, the emergence of digital financial services enabled by financial technology has not only enhanced efficiency in the sector but also posed new challenges for financial regulators and consumers. Ibrahim said that the impact of financial technology was apparent during the COVOD-19 induced lockdown which hindered physical access to financial services. He also revealed that the NDIC has activated its Crisis Management Action Plan to prevent any negative impact of COVID-19 on the corporation and financial institutions under its supervision. According to him, the plan is to ensure the safety and protection of all stakeholders to ensure continuity of their operations towards protecting depositors’ funds and guarantee stability in the banking sector.
The NDIC boss said that the corporation as part of the plan, embarked on massive nationwide awareness campaign to enlighten depositors on the safety of their funds in licensed financial institutions. Ibrahim said that the campaign was in recognition of depositors’ heightened fears due to lack of access to their money as a result of the COVID-19 disruptions.
“The issues confronting us today are indeed monumental and unprecedented but not insurmountable. The critical role of the media is central in shaping public perception and promoting financial stability through your reportage,’’ he said.
The workshop had as its theme: “COVID-19 and Financial Technology Disruption: Opportunities & Challenges for Banking System Stability and Deposit Insurance.”