BY COBHAM NSA, ABUJA – The Managing Director and Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has challenged the Institute of Directors (IoD) to evolve a more robust and transparent selection system for Independent Directors towards enhancing good corporate governance and sanity in Nigeria’s banking sector.
Ibrahim regretted that poor corporate governance practices have continued to pose a significant risk to the safety and stability of the sector and the IoD should be active stakeholders in addressing the unhealthy development.
He also charged the Institute to step up efforts and boost measures at strengthening capacity through continuous training focused on international best practices; excellence in management and service delivery; environmental sustainability; and inclusive growth.
According to a statement by Mohammed Ibrahim, NDIC’s Head, Communication and Public Affairs, Alhaji Ibrahim said such measures would not only enhance better quality of corporate governance, but also build a solid foundation of businesses across Nigeria
Addressing the Governing Council members of IoD Nigeria that visited the Corporation, led by its Chairman and IoD President, Alhaji Rufai Ahmed Mohammed, the NDIC Chief Executive said the problem of corporate governance still remain germane and central in public discourse today.
He admitted that the situation has been so since the 2009 banking crisis when the Central Bank of Nigeria (CBN) and NDIC Joint Special Examination of the then 24 Deposit Money Banks (DMBs) exposed the subject as one of the fundamental flaws in the banking system.
Ibrahim therefore pledged NDIC’s willingness to partner with IoD on strengthening the banking system even as he also urged the Institute to collaborate with the CBN, Financial Institutions Training Centre (FITC), the Society for Corporate Governance (SCG), and the Chartered Institute of Bankers (CIBN) in promoting capacity building for Independent Directors in the banks.
The NDIC Chief Executive further said the Corporation will partner the Institute on capacity building for its management, who are mostly engaged in bank examination to appreciate the dynamics of board performance.
Speaking earlier, the IoD Governing Council President, Rufai Mohammed said the visit was part of their initiative to promote collaboration and synergy with key institutions through effective interaction and advocacy.
He also praised the NDIC for effectively contributing to the stability currently witnessed in the Nigerian banking system.
