NDIC, stakeholders call for closer monitoring of COVID-19 impact on financial system

By Motolani Oseni

The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has said that the implementation of effective fiscal and monetary policy measures are critical towards addressing the unexpected impact of the COVID-19 pandemic on the financial system.

He made this in a speech delivered on his behalf by Mr Galadima Y. Gana, Director, Insurance Surveillance Department (ISD), NDIC during a Webinar meeting titled “The Impact of COVID-19 on the Banking System with a Special Focus on Non-Interest Financial Institutions’ (NIFIs)” organised by the NDIC in collaboration with the Islamic Financial Service Board (IFSB).

He described the Webinar event as a crucial platform for stakeholders and regulators in the industry to examine and analyse the issues affecting operations in the Non Interest Banking sector that has been impacted by the pandemic with a view to proffering effective solutions and interventions to ensure the stability of the financial system.

Gana explained that the aim of the Webinar was to bring critical stakeholders in the Non-Interest Banking sector to, among other issues, evaluate the Central Bank of Nigeria’s interventions in the sector in terms of enhancing financial inclusion, gain insights into consumer behaviour in light of the recent Sukuk Issuance as well as highlight global interventions such as the Islamic Development Bank’s Social Welfare Sukuk.

The Secretary-General of the IFSB, Dr Bello Lawal Danbatta disclosed that since its establishment in 2003, the IFSB has remained committed to the implementation of prudent regulations to promote financial system stability for Non-Interest Financial Institutions (NIFIs).

He said in light of the global impact of the COVID-19 pandemic on the financial system, it is critical for industry operators to strictly monitor their Credit, Market and Operation Risks for operational resilience as well as come up with a coordinated policy response for both domestic and international financial institutions.

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During the webinar, presentations were delivered by Managing Directors and Heads of Units of various NIFIs in Nigeria including Taj Bank Plc, SunTrust Bank Plc, Tijara Microfinance Bank, Jaiz Bank Plc and Sterling Bank Plc.

Also from members of the academia from across the country including those from Ahmadu Bello University Zaria and University of Lagos also served as panellists during the webinar.

Participants tabled their concerns and recommendations in a communique issued at the end of the Webinar.