Osinbajo charges NDIC to tackle non-performing loans in banks
Vice President Yemi Osinbajo has charged the Nigeria Deposit Insurance Corporation (NDIC) to team up with other stakeholders to address the problem of non-performing loans in the banking industry.
Osinbajo gave this charge during a courtesy call by the board and management of the corporation, stressing that government was not ready to repeat the mistakes of the past.
Meanwhile the Chairperson of NDIC Board, Mrs. Ronke Sokefun has pleaded with the VP to assist in speedy passage of the corporation’s Amendment Bill pending before the Senate.
A statement by the Head, Communications and Public Affairs Department, Mohammed Kudu Ibrahim, said the Vice President assured the new board being led by Mrs. Ronke Sokefun of support while he commended the corporation for prioritizing the interests of Nigerian depositors in its choice of the Bridge Bank option for the resolution of many banks in liquidation.
The statement said: “The Vice President noted that a lot still needs to be done in the area of sanitizing the banking system. He also stressed the need for fresh ideas to produce a more resilient structure involving the NDIC and other relevant stakeholders to address the issue of Non-performing loans in the industry and warned that the federal government was not prepared to repeat the mistakes of the past.
“On the issue of financial inclusion, the Vice President remarked that it was desirous for millions of poor Nigerians to be empowered through the extension of credit and urged for a sustainable framework to achieve the objectives set by the regulators. He lamented that the current structure for the operation of Micro-Finance Banks (MFBs) had failed to achieve the desired goals and called for concerted efforts of the relevant institutions including CBN and NDIC to come up with a framework that would facilitate the funding of federal government social intervention programs such as the N-Power, Trader-Money, and Market-Money so as to alleviate the suffering of millions of Nigerians.
“Earlier, the Chairman of the Board of the Corporation had thanked the Vice President for his warm reception and recalled that the NDIC as a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandates of effective supervision of the insured banks, timely payment of insured deposits and the implementation of a robust and efficient failure resolution regime.
“The Chairman concluded her remarks by drawing the attention of the Vice-President to the NDIC Amendment Bill currently pending before the Senate and solicited for his assistance in ensuring a quick passage of the Bill before the expiry of the present legislative session.”