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NDIC decries high rate of insider abuse in banks

The Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has expressed concern on the increasing wave of non-performing insider loans in banks.

A statement issued by the NDIC said  Ibrahim expressed the concern while receiving a delegation from the Chartered Institute of Bankers of Nigeria (CIBN) led by Prof. Segun Ajibola, its Council Chairman, in Abuja.

He said the development had potential consequences for the stability of the nation’s banking system.


According to him, the development also posed credibility questions which are capable of eroding public confidence in the banking system.

He called for strict compliance with existing code of conduct and review of existing laws to provide stiffer penalties to directors who took advantage of their positions and failed to repay loans.

The NDIC boss said that casual workers constituted about 25 per cent of the banking workforce and this was having negative impacts on the industry. Ibrahim also noted with concern the practice of some banks that assigned sensitive roles to casual workers and exposed the banking industry to frauds and forgeries.

Speaking on the recent staff rationalisation in some banks, Umaru urged banks to exercise caution so as not to create industrial unrest in the sector.


He called on the CIBN to intervene by advising its members on the aim of rationalisation which should be to weed out bad eggs in the industry. The NDIC boss promised that the corporation would continue to partner the CIBN and other professional bodies on capacity building among workers.

Ibrahim said that 77 members of staff of the corporation were currently undergoing the Bangor/CB MBA programme which commenced three years ago.

The News Agency of Nigeria (NAN) reports that the Bangor/CB MBA programme is an initiative of the NDIC, the CIBN and the Bangor University, Scotland. Ibrahim said that 14 members of his staff had already graduated from the programme.

He requested the CIBN to fast track the accreditation of the corporation’s training academy and the introduction of Deposit Insurance System (DIS) in the institute’s curricula.

In his response, Ajibola, expressed the appreciation of the CIBN to the corporation for positive contributions to the activities of the institute and its support towards the establishment of the CIBN Bankers House in Abuja.

He also commended NDIC for its contribution in ensuring stability in the banking system.


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