Chairman, Senate Committee on Banking, Insurance and other Financial Institution, Senator Uba Sani, has said that the Asset Management Corporation of Nigeria (AMCON) and Nigeria Deposit Insurance Corporation (NDIC) are critical and strategic to Nigeria’s economic recovery and financial stability.
Senator Sani noted that the NDIC is a strategic institution that the National Assembly must ensure it performs optimally, adding that the Corporation was established with the objectives of contributing to the financial system stability of the country.
The lawmaker spoke at separate retreats with AMCON and NDIC in Kaduna.
‘From Thursday 15th July to Saturday, 17th July 2021, the Senate Committee on Banking, Insurance and other Financial Institutions which I chair held separate retreats with the Asset Management Corporation of Nigeria (AMCON) and Nigeria Deposit Insurance Corporation (NDIC) at Bafra International Hotel, Kaduna,’ he stated.
‘The well attended and action-oriented retreats had as themes “Financial System Stability: A Panacea for Sustainable Economic Growth and Development – The Role of NDIC,” and “Asset Recovery as a Contributor to Economic Growth and Development: Challenges and Prospects of Asset Recovery in Nigeria – The AMCON Experience.”
‘In my remarks at the two retreats, I highlighted the critical and strategic importance of AMCON and NDIC to Nigeria’s economic recovery and stabilisation efforts, especially in ensuring financial stability. “NDIC is a strategic institution that the National Assembly must do all in its powers to ensure it performs optimally. NDIC was established with the objectives of contributing to financial system stability; protecting small and less financially sophisticated depositors by providing an orderly means of resolution and compensation in the unlikely event of failure of their insured financial institutions.
‘In respect of the Asset Management Corporation of Nigeria (AMCON), I stated that “since the establishment of AMCON in 2010, conscious and deliberate efforts have been made by the National Assembly to strengthen its legal and institutional frameworks to enable it to contribute optimally to our economic recovery and stabilisation efforts. The National Assembly amended the Act in 2015 and 2019. In response to the impact of the Covid-19 on AMCON’s policies and processes, the Senate amended the Act in 2021 by extending the tenor of the Resolution Cost Fund and also empowered AMCON to access the Special Tribunal established by the BOFIA, 2020 for dealing with financial related matters,’ Senator Sani said.
In his remarks at the retreat, the Managing Director of NDIC, Mr Bello Hassan said he was pleased to inform retreat participants that “the Corporation in collaboration with other key stakeholders have been proactive in managing the risks associated with cyber insecurity. The NDIC has taken important steps at ensuring the safety of the Nigerian banks and the protection of depositors in line with its mandate. For instance, the NDIC in 2020 established a ‘FinTech and Innovation Unit’ to effectively respond to the challenges of cyber threats among other challenges of the FinTech Innovations.
‘Also, the Corporation had used this platform to commence supervisory measures for digital banks, enhance existing consumer protection measures, especially as regards digital deposit, through enhanced collaboration with other safety-net players.’
In his contribution, Mr Ahmed Kuru, AMCON Managing Director revealed that the foremost asset recovery institution has made remarkable progress in its debt recovery efforts.
AMCON has so far recovered about N1.4 trillion naira. I am optimistic that if AMCON maintains the current debt recovery and asset disposal momentum, in 15 years it will fully discharge its obligations to the Central Bank of Nigeria (CBN)
Discussions at the 2-day retreats were very lively, revealing and forward-looking. Experiences and challenges were shared.
The retreat deepened Committee members understanding of the strategic roles of AMCON and NDIC in the economy, particularly the financial system.
NDIC and AMCON shared their thoughts with members on ways they can be strengthened legally and institutionally to ensure optimal performance.
The Committee assured AMCON and NDIC of their commitment to deepening its partnership with the two important institutions.
‘Participants went away with some actionable points, which if followed and fully implemented by Committee members, NDIC and AMCON, will reposition the two strategic institutions and help quicken our economic recovery,’ Senator Sani added.