The Nigeria Deposit Insurance Corporation (NDIC) has called for increased collaboration with the House of Representatives Committee on Insurance and Actuarial Matters to address financial irregularities and ensure economic stability.

The corporation said this at a workshop for the House of Representatives Committee on Insurance and Actuarial Matters themed, ‘Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability’ held in Lagos.

It also said it has settled 99 per cent of the insured deposits of the defunct Heritage Bank.
At the event, the Managing Director/Chief Executive of the NDIC, Bello Hassan, said in considering the Federal Government’s determination to achieve sustainable growth, it is important to strengthen the financial system and ensure its stability amid emerging and ongoing disruptions in the financial structure.

“The corporation is committed to paying all insured sums promptly in line with best practice. Moreover, we have made significant progress in the disposal of the physical assets of the defunct bank, and we are pleased to announce that the first tranche of the liquidation dividend of 9.2 kobo per cent naira will be paid to uninsured depositors of the defunct bank before the end of April 2025,” he said.

Hassan explained that financial disruptions could change the way things are done and are always associated with opportunities and challenges.

“Key contributors to these disruptions include digital innovations, poor governance, market volatility, economic shocks, inadequate risk management, cybersecurity risk and the proliferation of Ponzi schemes among others,” he said.

According to him, if the challenges are not addressed in a timely and effective manner, they could erode public and investors’ confidence, with the attendant consequences on financial system stability.

To deal with the challenges associated with financial disruption effectively, he said, banks need a multifaceted strategy that blends resilience, innovation and a culture of compliance with regulations.

Chairman of the House Committee on Insurance and Actuarial Matters, Ahmadu Usman Jaha, expressed the committee’s commitment to providing the necessary legislative backing and oversight that would enable the NDIC to function at the highest level of efficiency and effectiveness.