NDIC restates commitment to NFIS achievements

NDIC restates commitment to NFIS achievements

The Nigeria Deposit Insurance Corporation (NDIC) plays a critical role in contributing to the objectives of the National Financial Inclusion Strategy (NFIS) through the provision of deposit insurance coverage to depositors of licensed banks.

The NDIC’s activities through the supervision of banks, not only enhance depositors’ confidence in the financial system but also serves as an incentive for the unbanked to access the financial services of licensed banks.

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).

The Corporation is also part of the efforts to further enhance the attainment of national financial inclusion targets as the National Financial Inclusion Governance Committee sets to host the maiden International Financial Inclusion Conference 2022 scheduled to take place between the 24th and 25th of November 2022 on Abuja, Nigeria.

With the theme “Financial Inclusion for all: Scaling Innovative Digital Models”, the conference is the first to be held since the launch of the NFIS in 2012. 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 per cent in 2020.

It is important to note that 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. Other areas through which the Corporation supports financial inclusion include: Supervision and failure resolution of licensed deposit-taking institutions thereby engendering public confidence; Enforcement of regulatory policies, entrenching enhanced risk management practices to improve financial stability through differential-premium assessment system (DPAS) and monitoring of fraud in the banking system thereby supporting financial inclusion and Financial Literacy which is critical in accelerating financial inclusion. Apart from being a member of the Financial Literacy Steering Committee (FLSC) and Financial Literacy Implementation Committee (FLIC), NDIC has also undertaken financial literacy education through press briefings, advertorials, jingles on radio and television, participation in trade fairs and exhibitions as well as participation in the World Savings Day, among others, to promote public confidence.

Others are; In recognition of the role of electronic and mobile money as a critical tool for financial inclusion, the Corporation extends deposit guarantee to Subscribers of Mobile Money through its Pass-Through Deposit Insurance and the NDIC also promotes competition among deposit-taking institutions. This is important in driving financial inclusion as smaller institutions like MFBs, PSBs, MMOs, with no brand visibility that are closer to the unserved/underserved can compete favourably with the larger banks by virtue of the deposit protection offered by the NDIC which makes the depositors feel safe and protected.