The Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) have launched a comprehensive supervision effort to ensure that non-performing loans remain below the designated threshold.
Speaking at a legislative retreat themed: “Deepening Deposit Insurance Knowledge for Effective Legislative Functions,” NDIC managing director Bello Hassan disclosed the initiation of heightened surveillance measures. Hassan praised the resilience of the Nigerian banking sector in the face of economic challenges, highlighting its ability to weather turbulent times.
Currently, the non-performing loan ratio stands below the maximum threshold set by the CBN, and efforts are underway to maintain this level. Hassan emphasized the necessity of collaboration and enhanced supervision to bolster the quality of risk assets and address potential risks.
The legislative retreat aims to familiarize lawmakers with NDIC laws, identify barriers to mandate implementation, and facilitate dialogue on future strategies.
Hassan reiterated the commitment of the NDIC and CBN to ensure the soundness of the banking sector through various measures, including rigorous surveillance to safeguard the quality of risk assets.
In response, Mr. Mukhial Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, pledged the lawmakers’ support for NDIC’s oversight functions.
Abiru acknowledged the impact of naira depreciation on banks’ balance sheets but lauded the sector’s favorable ratios, particularly liquidity, which exceeds the required minimum.
