The Senate Committee on Banking, Insurance, and Other Financial Institutions has tasked the Nigeria Deposit Insurance Corporation (NDIC) to prioritize early detection of risks to safeguard depositors’ funds in the banking system.
This call was made during the 2025 NDIC Retreat in Niger State, where the committee chairman, Senator Mukhail Abiru, emphasised the need for a proactive approach to financial crisis prevention.
Senator Abiru stressed the importance of strengthening NDIC’s risk management systems to address emerging challenges, such as cybersecurity threats.
Also, Senator Babangida Hussaini echoed the need for proactive regulation in the banking sector, focusing on preventing distress rather than just responding to failures.
Senator Hussaini also called for intensified supervision and institutional review of legacy cases, including insider abuses.
NDIC Managing Director/CEO, Dr. Oludare Sunday, pledged to review the corporation’s risk management system to address emerging challenges.
Dr. Sunday vowed to maintain regular engagement with the legislature to ensure transparency and alignment on key issues.
Professor Uche Uwaleke, Director of the Institute of Capital Market Studies, urged the senate committee to consider forward-looking reforms in Nigeria’s deposit insurance system through amendments to the NDIC Act 2023.
Prof. Uwaleke emphasised the need for Nigeria to build a more resilient, flexible, and responsive deposit insurance system by aligning with international best practices.
Uwaleke highlighted the need for the NDIC Act to adequately empower the corporation to monitor, assess, or resolve risks emerging from fintech firms.
He proposed the inclusion of provisions for fast-track resolution of digital-only financial institutions.
Uwaleke called for amendments to relevant sections requiring cooperation of the Central Bank of Nigeria (CBN) by substituting “collaboration” for “concurrence.”
He also proposed the amendment of Section 89 (1) to grant NDIC access to real-time payments data and digital account flows.
Uwaleke urged the senate committee to include a provision that allows NDIC to adopt tiered or risk-based coverage limits, rather than a one-size-fits-all deposit insurance scheme.
