THE Federal Government has urged the Nigeria Deposit Insurance Corporation, NDIC, and other regulatory institutions in the nation’s financial sector to put in place pro-active mechanisms to ensure continued depositor protection and a safe and sound financial system that would minimise the impact of the falling oil prices on the economy.
Minister of State for Finance, Ambassador Basir Yuguda, made the call, weekend, in Abuja at the NDIC 25th anniversary gala/awards night.
The minister said though the accomplishments and successes recorded by NDIC over the years called for celebration, the imminent economic down turn staring the country on the face demanded that the corporation and other sister regulatory institutions should adopt measures to save Nigeria from possible dangers.
He said: “While we celebrate on this auspicious occasion, I want us to spare a moment’s thought to some issues which are starring us in the face, and which may dictate our economic fortunes in time to come, because they will inevitably determine how well banks supervisors and regulators should prepare, position and pro-actively react to circumstances as they occur.
“Another time for caution is here. Red-flashes have once again appeared on the global horizon, which we must as a nation, take note of, and prepare for. Anyone or nation that does not learn from previous crisis is indeed unwittingly placing him/itself squarely in the line of fire. Similar events to those which heralded the most recent recession are once again playing out.”
The minister, who lamented the recent shocking impact of the fall in oil price on the naira and 2015 budget, charged all government agencies to ensure that the current situation is contained with less impact to the economy.
According to him, “it is unfortunate to note that the falling oil prices have already begun to take a toll on us. We have seen in the most recent past, the value of the naira battling to remain at a reasonable level against other foreign currencies. This is already having an effect on our 2015 budget by ways of the announced cuts and belt-tightening measures.
“I call on NDIC to once again rise up to this challenge as always. You must ensure that you put in place pro-active mechanisms to ensure continued depositor protection and sound economic system.”
Congratulates NDIC over award
He, however, congratulated the corporation on the receipt of the international award, IADI, as the best deposit insurance organisation of the year, which he described a testimony to the corporation’s commitment to excellence in the discharge of its mandate and roles as a deposit insurer.
In his goodwill message, Chairman, NDIC Board, Hassan Adamu, said since the establishment of the NDIC 25 years ago, it had remained a strong player in the safety-net mechanism of the Nigerian banking system, thereby ensuring the protection of depositors and continued stability of the Nigerian financial system. (Vanguard)
