A former Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, has called on the Federal Government to merge the Nigeria Deposit Insurance Corporation with the Asset Management Corporation of Nigeria.
She said the NDIC was at the moment inefficient and lacked the capacity to be a true insurer of the Deposit Money Banks in the country.
Okereke-Onyiuke said this on Wednesday in Lagos at the launch of a book, ‘Inside Nigerian Banks’, written by Mr. Nik Ogbulie, adding that if the NDIC was efficient, there would not have been the need to create AMCON in the first place.
According to her, sustaining both institutions is wasteful as they have similar mandates.
The former NSE boss said the government was gradually killing the banking industry as the NDIC and AMCON were not getting adequate funding from the government, but relied on the banks for resources.
Okereke-Onyiuke said, “The NDIC and AMCON are taking so much money from the banks. Depositors are getting less returns on their deposits as a result of this.
“They are being funded by the banks using depositors’ funds. Keeping both institutions is a waste of time, money and human resources. They should be merged and made to work.”
Earlier, a former Managing Director of the defunct Fortune Bank and current Delta State Commissioner for Water Resources Development, Mr. Fidelis Tilije, described the NDIC as inefficient.
He called for the scrapping of the corporation, saying its existence amounted to duplication of duties since its functions had already been taken over by AMCON.
“The NDIC is funded by banks the same way AMCON is also being funded by the banks. But the NDIC won’t do anything when depositors are in trouble. It will be nowhere to be found, while AMCON is solely responsible for the recovery of debts from debtors. So, the NDIC should be scrapped,” he stressed.
Ogbulie said the book emphasised the fact that the new banking structure in the country was a consequence of the successful completion of the sector’s consolidation and the implementation of the attendant reform agenda.
This, he noted, became possible due to the ability of Nigerian banks to raise the required capital mainly from the domestic market