House Committee on Insurance and Actuarial Matters Holds 2025 Stakeholders Workshop with NDIC

The House Committee on Insurance and Actuarial Matters recently held its 2025 Stakeholders Workshop in collaboration with the Nigeria Deposit Insurance Corporation (NDIC). The workshop’s theme was “Navigating Financial Disruptions: Strengthening the NDIC’s Mandate for Economic Stability.”

Key Highlights:

• The workshop brought together key stakeholders to discuss strategies for enhancing the NDIC’s role in maintaining economic stability.
• Discussions focused on navigating financial disruptions and strengthening the NDIC’s mandate.

Objective:

• To explore ways to bolster the NDIC’s effectiveness in ensuring financial stability and protecting depositors’ interests.

The workshop provided a platform for expert insights, collaboration, and recommendations to support the NDIC’s mission.

The Nigeria Deposit Insurance Corporation (NDIC) has identified key contributors to disruptions in Nigeria’s financial system, including:

• Digital Innovations: While digital innovations can bring opportunities, they also pose challenges, such as cybersecurity risks and potential disruptions to financial stability.
• Poor Governance: Weak corporate governance and poor management practices can lead to financial instability.
• Market Volatility: Fluctuations in market conditions can impact financial institutions’ stability.
• Economic Shocks: Economic downturns or unexpected events can affect financial institutions’ performance.
• Inadequate Risk Management: Failure to manage risks effectively can lead to financial instability.
• Cybersecurity Risk: Increased risk of cyber-attacks and data breaches.
• Ponzi Schemes: The proliferation of Ponzi schemes and “wonder banks” can erode public confidence in the financial system.

To address these challenges, NDIC Managing Director Bello Hassan emphasized the need for banks to adopt a multifaceted strategy that blends resilience, innovation, and compliance with regulations. The NDIC is also working to protect consumers and preserve public confidence in the financial system through public awareness campaigns and education on the risks of engaging with unlicensed financial institutions.

Some notable actions by the NDIC include:

• Payment of Liquidation Dividend: The NDIC will commence payment of the first tranche liquidation dividend to uninsured depositors of defunct Heritage Bank before the end of April 2025.
• Aggressive Debt Recovery: The Corporation is re-strategizing on debt recovery to pay the balance of uninsured depositors and other claimants.
• Consumer Protection: NDIC recognizes the importance of consumer protection and preserving public confidence in the financial system.

Cover Photo Caption: Honourable members of the House Committee on Insurance and Actuarial Matters and Executive Management of the Nigeria Deposit Insurance Corporation (NDIC) in a group photo at the 2025 Stakeholders Workshop of the House Committee with the theme “Navigating Financial Disruption
Strengthening the NDIC’s Mandate for Economic Stability” held in Lagos.