Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, has urged the Central Bank of Nigeria (CBN) to collaborate with the National Assembly and key stakeholders in its proposed recapitalization of banks in the country. Speaking at the committee’s retreat with the Nigeria Deposit Insurance Corporation (NDIC) in Lagos State on Saturday, Senator Abiru emphasized the importance of continuous strengthening of the financial sector.
Senator Abiru welcomed the CBN’s plan to recapitalize banks but stressed the need for inclusive engagement with critical stakeholders, including the National Assembly. He highlighted the significance of effective oversight by the National Assembly to ensure the resilience and public confidence in the country’s financial sector.
The retreat aimed to enhance understanding and deepen the role of the NDIC in the deposit insurance business. Senator Abiru acknowledged the resilience of Nigerian banks despite global and national challenges, such as the depreciation of the national currency. He expressed the legislators’ responsibility to comprehend the regulators’ roles, especially in light of the impending recapitalization by the CBN.
Bello Hassan, the Managing Director/Chief Executive of NDIC, stated in his welcome address that the retreat sought to establish a mutual working relationship between the legislature and the corporation. He emphasized the crucial role of the Deposit Insurance System in maintaining financial system stability and public confidence in the banking sector. Hassan underscored the importance of a robust legal framework and the harmonious relationship between the legislature and the corporation for effective deposit insurance.
The NDIC, empowered to protect depositors in deposit-taking financial institutions, plays a pivotal role in incentivizing sound risk management in the Nigerian banking system and contributing to overall financial system stability.
