NDIC AND BANKING SECTOR CHALLENGES

The NDIC workshop for finance correspondents was worth it, writes Bashir Ibrahim Hassan

Expectations were quite high that the 2017 workshop for the Finance Correspondents Association of Nigeria (FICAN) held in Kano November 23-24, 2017 would yield solutions to current challenges in the financial system. The Nigeria Deposit Insurance Corporation (NDIC) organised this year’s workshop on the theme “The Nigerian Banking Sector: Opportunities, Challenges and the Way Forward” for business journalists, regulators, operators and other experts in the financial sector. Over 120 Business Editors and Finance correspondents nationwide as well as representatives of over 10 civil society organisations (CSOs) attended the workshop.

An inspiring ambience for the event was provided by the venue -- Coronation Hall at Government House, Kano State -- which was provided free of charge by the state government. For effect, the government also facilitated a tour of landmark projects by participants.

The Governor, Dr. Abdullahi Umar Ganduje, was unavoidably absent, but was represented by a powerful team led by the Secretary to the State Government, Alhaji Usman Alhaji, who delivered the governor’s message. In it, Dr. Ganduje reeled out several accomplishments, including reforms in financial management that promoted transparency and accountability. He added that the state’s anti-corruption agency had been strengthened to boost citizens and investors’ confidence in government, resulting in its selection as one of the two states piloting the open government initiative. This involves open budgeting, tax transparency, ease of doing business and access to information. To enhance its transparency policy, Dr. Ganduje said the state regularly published its financial statements in newspapers and on the website of the State Ministry of Finance.

A variety of presentations was made at the workshop by an array of seasoned professionals from the banks, regulatory bodies, other financial experts and the media as well as eminent personalities from the National Assembly. The paper titled “Rebuilding Financial Infrastructure in the North East” was facilitated by Dr. Mudashiru Olaitan, Director, Development Finance Department, Central Bank of Nigeria (CBN) and moderated by Sen. Rafiu Adebayo Ibrahim, Chairman, Senate Committee on Banking, Insurance & Other Financial Institutions. Dr Olaitan who was represented by a Deputy Director, Sani Mohammed justified the need to rebuild financial infrastructure in the North East. Olaitan said the region was key to the Nigerian economy, as it was a bastion of commerce and trade with prominent local enterprises and well-established trade routes across the Sahara. In his remarks, Sen Ibrahim said the National Assembly was committed to the development of the North East Region.

NDIC Managing Director, Alh. Umaru Ibrahim, called on the governors in the region to collaborate with the CBN toward rebuilding economic infrastructure in the area. “I think that there is the need for more collaboration between the governors of the North East and the CBN. I will like a situation whereby we sit with the governors and go over all decisions because without them, not much can be achieved on this issue,” he said.

A former Minister of National Planning, Prof. Ode Ojowu, facilitated the paper titled “Insulating the Economic Recovery and Growth Plan (ERGP) from Political Storm” in which he contended that the ERGP was the government’s instrument for pulling the economy out of recession and into the path of sustainable growth. He stressed the need to insulate the ERGP implementation from partisan politics.

Olufemi Fakeye, Chairman, House Committee on Insurance & Actuarial Matters, who chaired the session, called on the executive to drop a proposal sent to NASS on the recall of all unspent capital expenditure as at December 31 of every year in view of late submission and passage of the budget.

The paper by Adedapo Adeleke, Director of the Bank Examination Department at NDIC was titled “Curtailing the Growth of NonPerforming Loans (NPLs) in Banks - The Role of Regulators and Supervisors.” Dr. Effiong Essien, Senior Special Assistant to the President on ERGP moderated it. Dr Kabiru Katata presented a paper titled “Financial Disruption of Digital Currency & its Consequences on the Banking System & Deposit Insurance System (DIS)” in which he addressed the two concepts of digital currency and “FinTech”. This engaged much of the attention of many participants.

In his paper titled “Cyber Crime: Nature & Trends”, Mr. Pattison Boleigha, Chief Compliance Officer (CCO), Access Bank Plc, traced the evolution of cybercrimes to “the swift expansion of computer, mobile and internet technologies,” noting how the nature and pattern of cybercrime incidents had become more sophisticated and complex. He called for increased security awareness for employees and customers of banks.

Mrs. Temitope Akin-Fadeyi, Head of the Financial Inclusion Secretariat, CBN spoke on “Financial Literacy in Nigeria: Achievements & Challenges”. She identified the factors that compelled the development of Financial Literacy Framework in the country such as the integration of national economies through trade and investment; increasing innovation in financial products and services; market sophistication; weak or non-existing consumer protection regimes and market indiscipline. The last paper titled, “The Role of the Media in Enhancing Financial Literacy and Consumer Protection”, delivered by Mr. Jerry Uwah, Editor, Southern Operations of Blueprint newspaper, who pointed out that the concept transcended owning a bank account and covers other areas of the financial services sector such as pension, insurance, mortgage, bonds, treasury bills windows and the capital market.

The NDIC-FICAN Workshop series was pioneered 15 years ago and has been transformed into a platform for increasing the capacity of the media to dissect critical issues affecting the financial sector. At the end of it all, there was this feeling that NDIC must both sustain the workshop and ensure that it continues to attract quality of resource persons.