Contending that present structure of microfinance institutions have failed, Vice President Yemi Osinbajo has called on Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation to take over funding and management of N’Power, Trader Moni, Market Moni and other such programmes.
Receiving board and management members of NDIC in his office last weekend, Osinbajo said it was desirous for millions of poor Nigerians to be empowered through the extension of credit.
According to a statement by Head, Communications and Public Affairs Unit of NDIC, Muhammed Kudu Ibrahim, Osinbajo lamented that the current structure for the operation of Microfinance Banks (MFBs) had failed to achieve the desired goals.
He, therefore, called for a sustainable framework to achieve the objectives set by the regulators.
While congratulating the Chairman, Mrs Ronke Sokefun and other members of the Board for their appointment, he praised commended the Management for prioritising the interests of Nigerian depositors in its choice of the Bridge Bank option for the resolution of recent banks liquidation.
The Vice Presiden, however, noted that a lot still needs to be done in the area of sanitizing the banking system.
He called for the injection of fresh ideas to produce a more resilient structure involving the NDIC and other relevant stakeholders to address the issue of non-performing loans.
Osinbajo warned that the federal government was not prepared to repeat the mistakes of the past.
Earlier, the Chairman of the Board of the Corporation had thanked the Vice President for his warm reception and recalled that the NDIC as a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandates of effective supervision of the insured banks, timely payment of insured deposits and the implementation of a robust and efficient failure resolution regime.
The Chairman concluded her remarks by drawing the attention of the Vice-President to the NDIC Amendment Bill currently pending before the Senate and solicited for his assistance in ensuring quick passage of the Bill before the expiry of the present legislative session.
In his remarks, the MD/CEO of the Corporation, Umaru Ibrahim, FCIB mni, joined the Chairman in seeking for the assistance of the Vice President towards the speedy passage the Bill to amend the NDIC Act pending at the Senate to strengthen the capacity of the Corporation effectively supervise insured financial institutions for a safe and sound banking system in the country.
Commenting further on the activities of the Corporation, the NDIC boss informed the Vice President that the NDIC undertakes periodic examination of banks in collaboration with the CBN and issues reports with far reaching recommendations to the Boards of banks for compliance to ensure the safety, soundness and stability of the Nigerian banking system.
The MD/CEO recalled the efforts of regulatory/supervisory authorities to sanitize and strengthen the micro, small and medium scale enterprises (MSMEs), through enhanced capital requirements of MFBs and the establishment of a National Microfinance Bank to enable the subsector to play their role of providing credit.