The Senate Committee on Banking, Insurance and Other Financial Institutions has counselled newly appointed Managing Director of Nigerian Deposit Insurance Corporation (NDIC) Dr Oludare Sunday and his team to be proactive in crisis prevention in the financial institution rather than focusing solely on interventions after institutions collapse.
The committee tasked the NDIC team to safeguard depositors’ funds. The committee Chairman, Senator Mukhail Abiru gave the admonition on Monday during the NDIC 2025 Retreat for the Committee in Niger State .
NDIC’s Managing Director, Dr Oludare Sunday and his team was formally inaugurated on Friday by Minister of finance and coordinating Minister for the economy Mr Wale Edun after screening procedure by the National Assembly.
While noting the growing prevalence of cyber threats and digital vulnerabilities in the financial system, Abiru urged the NDIC to strengthen its risk management systems and maintain a high level of vigilance.
“We live in rapidly changing times. Beyond the usual challenges banks face, we are also dealing with cyberattacks and other risks. I’m sure you are already thinking of how to incorporate risk management to address these issues in the banking sector, which you are now beginning to oversee,” he stated.
The lawmaker further assured the NDIC of continuous legislative support to enable the agency perform its mandate effectively.
Backing Abiru’s position, member of the Committee, Senator Babangida Hussaini (Jigawa North-West) stressed the importance of proactive regulation in the banking sector.
“Let me also echo what was said earlier: prevention is better than cure. The main goal of the Corporation is to protect bank customers and investors. It is important that you focus on preventing distress in the banking sector, not just on how to respond after failures. Make sure that people do not lose their money in banks in the first place,” he stated.
Hussaini also called for intensified supervision and an institutional review of legacy cases, including insider abuse.
He referenced an earlier report by the Economic and Financial Crimes Commission (EFCC) report containing details of insider abuses and advised the new management to revisit the files and ensure necessary actions are taken.
“We observed some lapses in supervision during our oversight visit to the Kano office. Strengthening your internal control and early warning systems will help prevent distress before it happens,” he said.
In his remarks, the new NDIC Managing Director, Dr Oludare Sunday, expressed appreciation to the Senate for the confidence reposed in the new team and pledged to consolidate on past achievements.
Sunday also pledged to maintain regular engagement with the legislature to ensure transparency and alignment on key issues
“We have heard the charge by the chairman of the committee. Like we discussed earlier, there is no intention to reinvent the wheel. If things are working, we will simply fine-tune them and make them better. That is the promise we are making.
“We have been charged to review our risk management system, especially in light of developments like cybersecurity threats. We will treat that with all the seriousness it deserves. It is part of the vision we have for NDIC.
“We thank the National Assembly for the legislative support we have enjoyed so far and the ongoing cooperation. We ask that this support be sustained. We, in turn, assure you that we will do our best to meet with the committee regularly and fulfil our responsibilities,” he stated.
