How NDIC plays key role in driving financial inclusion – Nuhu

Our reporter| The Nigeria Deposit Insurance Corporation (NDIC) has restated that the provision of deposit insurance coverage to depositors of licensed banks by the Corporation is critical to achieving the objectives of the National Financial Inclusion Strategy (NFIS).

This is coming ahead of the maiden International Financial Inclusion Conference 2022 scheduled to take place between November 24 and 25 in Abuja, with the theme “Financial Inclusion for all: Scaling Innovative Digital Models”.

Spokesman of the Corporation, Bashir Nuhu, in a statement sent to Alabingo.com, maintained that the NDIC’s activities through the supervision of banks, not only enhances depositors’ confidence in the financial system, but also serves as incentive to the unbanked to access financial services of the licensed banks.

According to him, the Corporation has also been at the forefront of the implementation of the NFIS in Nigeria as a member of the National Financial Inclusion Governance Committee headed by the Central Bank of Nigeria (CBN).

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He said: “The NFIS set the target of reducing the percentage of adult Nigerians that do not have access to financial services from 46.3% in 2010 to 20.0% in 2020.

“Since the launch of the NFIS, stakeholders have achieved great strides in achieving financial inclusion objectives which has resulted in the exclusion rate dropping from 46.3% in 2010 to 35.9% in 2020.

“The Corporation has contributed significantly to the nation’s financial inclusion objectives through provision of deposit protection to all licensed deposit-taking institutions via its deposit insurance”.

According to Nuhu, quite a number of the financially excluded individuals failed to join the formal financial system due to fear of possible loss of their savings from bank failure which the deposit insurance of the NDIC addresses.

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He also highlighted other areas through which the Corporation supports financial inclusion to include: supervision and failure resolution of licensed deposit-taking institutions thereby engendering public confidence, enforcement of regulatory policies, entrenching enhanced risk management practices.

Others include: financial literacy, extension of deposit guarantee to subscribers of Mobile Money through its Pass-Through Deposit Insurance as well as promotion of competition among deposit taking institutions.

The NDIC is a statutory body established by NDIC Act No. 16 of 2006 with exclusive mandate of administering the Deposit Insurance System (DIS) in Nigeria.

As one of the components of the nation’s financial safety-net arrangement, the NDIC has the responsibility of protecting depositors and guaranteeing the payment of insured sums when the license of a deposit-taking financial institution is revoked by the CBN.

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