NDIC, CIBN move to tackle emerging risks in banking sector

– Sunday seeks stronger collaboration on digital banking, cybersecurity, fraud prevention

The Nigeria Deposit Insurance Corporation (NDIC) and the Chartered Institute of Bankers of Nigeria (CIBN) have agreed to strengthen collaboration in tackling emerging risks in the country’s financial sector, particularly in the areas of digital banking, cybersecurity, fraud prevention, and risk management.

This was the outcome of a courtesy visit by the President/Chairman of Council of the CIBN, Prof. Pius Deji Olanrewaju, and members of his executive team to the NDIC headquarters in Abuja, where they were received by the Managing Director/Chief Executive of the Corporation, Mr. Thompson Oludare Sunday.

Mr. Sunday, who assumed office recently as NDIC’s Chief Executive, called for closer partnership between both institutions to address the growing complexities and risks posed by technological innovations in the banking industry.

He noted that while digital transformation continues to shape the future of financial services, it has also introduced new vulnerabilities, including cyber threats, fraud, and operational risks that require collective effort to mitigate.

“Regulators and operators must come together to proffer solutions that help build a stronger financial ecosystem capable of withstanding the vagaries of innovation and delivering value to the economy,” he said.

The NDIC boss commended the CIBN for its consistent role in promoting professionalism and ethical standards within the banking sector, urging the Institute to work more closely with regulatory bodies to develop innovative failure resolution strategies that enhance the resilience of the financial system.

Mr. Sunday reaffirmed the Corporation’s commitment to supporting professional institutions like the CIBN in developing and implementing programmes that promote innovation while maintaining sound risk management and financial stability.

In his remarks, the CIBN President, Prof. Olanrewaju, congratulated Mr. Sunday on his appointment and expressed confidence in his capacity to sustain public trust in the NDIC and deepen its role in safeguarding depositors’ interests.

He commended the Corporation for several milestone achievements, including the upward review of deposit insurance coverage to boost depositor confidence, the use of technology to expedite the reimbursement of depositors of the failed Heritage Bank, and the commencement of liquidation dividend payments within one year of the bank’s closure.

According to him, these initiatives have significantly improved public confidence in Nigeria’s banking system and reinforced NDIC’s reputation as a proactive regulator.

Prof. Olanrewaju also expressed appreciation for NDIC’s active participation as a member of the CIBN Governing Council, noting that the Corporation’s input has continued to strengthen the Council’s oversight and policy formulation functions.

The visit, he added, marked a renewed commitment by both institutions to collaborate more effectively in addressing emerging challenges and sustaining confidence in the nation’s financial system.