Former NDIC Boss Explains Why 20 Nigerian Banks Failed
- The former CEO of NDIC has explained the reason banks in Nigeria shut down
- This followed an earlier report that 20 Nigerian banks stopped operations in the country
- According to the NDIC boss, many banks failed because of non-compliance with risk management
Umaru Ibrahim, the immediate past managing director and chief executive officer of the Nigerian Deposit Insurance Association (NDIC), has explained why Nigerian banks failed.
Source: UGC
He disclosed this during the 10th-anniversary conference and induction of new members at this year's Enterprise Risk Management and Compliance Week.
This followed an earlier report by Legit.ng that highlighted the names of 20 failed banks.
The report cited Liberty Bank, City Express Bank, and 18 others as failed banks whose depositors and other shareholders will get N16.18 billion in liquidation dividends.
Many banks failed because of non-compliance with risk management
According to The Guardian report, Ibrahim stated that many banks failed due to non-compliance with risk management.
He said that by the time the banks realized the importance of risk management, it was already late, and the situation was irredeemable, hence the failure of the banks.
He warned the inductees that risk management might not make them popular right now, but that shouldn't mean they should shove it aside.
As the inductees prepared to perform their roles as risk and compliance specialists, he cautioned them not to sacrifice their integrity.
Blaise Ijebor, Director of Risk Management at the Central Bank of Nigeria (CBN), called for the need to encourage inductees to remain steadfast in their profession and, most importantly, to contribute to the nation's growth and development.
Olusegun Aganga, the former minister of industry, trade and investment, advised that inductees ensure risks are mitigated and leveraged as opportunities for growth and innovation as they get set for the pivotal role.
Legit.ng had earlier reported that the NDIC has started verifying the insured depositors of Peak Merchant Bank in liquidation.
"N500k/person": List emerges as NDIC is set to pay depositors of 20 failed banks N16.18bn dividends
Legit.ng also reported that the NDIC had announced plans to complete liquidation payments amounting to N16.18 billion for depositors of the 20 failed banks.
The NDIC had already asked depositors to come for verification and disbursement of insured deposits exceeding the guaranteed sums, referred to as liquidation dividends.
The Managing Director of the corporation, Bello Hassan, disclosed this at the NDIC Day at the ongoing 44th Kano International Trade Fair in Kano.
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Source: Legit.ng
