VICTORIA ONU, ABUJA
THE Nigeria Deposit Insurance Corporation has said that the threat of economic recession, and rise in the nation’s debt, are putting pressure on regulatory supervision.
It also identifed increase in non-performing loans and potential financial crisis as other factors that were posing challenges to its activities.
The Managing Director, NDIC, Umaru Ibrahim, said these at the 2020 edition of the Corporation’s workshop for Business Editors and Finance Correspondents.
The theme of the workshop is “COVID-19 and fintech disruption: Opportunities and challenges for the banking system stability and deposit insurance.”
He said the corporation was committed to the protection of the stability of the banking sector in Nigeria.
Speaking on the impact of the COVID-19 pandemic, he said this had disrupted social and economic activities with negative consequences on all lives and nations across the world.
The NDIC boss said the emergence of digital financial services enabled by financial technology had enhanced efficiency in the financial sector.
He, however, said this had also posed new challenges to financial regulators and consumers.
He explained that the challenges to financial regulators became more evident during the pandemic when the lockdown protocols hindered physical access to financial services, encouraging more Nigerians to rely on digital financial services.
He said, “As disruptive as the COVID-19 pandemic has been to other sectors of the country, I would like to humbly state that the NDIC was not caught napping.
“Based on its robust and proactive Enterprise Risk Management strategy, the Corporation immediately swung into action by activating its Crisis Management Action Plan to prevent any negative impact on the operations of the NDIC and the financial institutions under its supervision.
“The goal is to ensure the safety and protection of all staff and stakeholders to maintain continuity of its operations towards protecting depositors’ funds and ensuring the stability of the banking sector.”
In recognition of the heightened fears of depositors’ lack of access to their money due to the COVID-19 disruptions, the NDIC boss said the Corporation embarked on a nationwide public awareness campaign to enlighten depositors on the continued safety and security of their funds in licensed financial institutions.
Ibrahim said Nigeria’s financial technology solution accounted for 25 per cent of the $491.6m raised by African fintech start-ups in 2019.
The NDIC boss, who noted that there was a number of Fintech solution offered by banks and mobile network operators as part of their product portfolio in Nigeria, also announced that between 2014 and 2019 alone, Fintech sector recorded over $600m in funding.
