By Babajide Komolafe
The Bank Directors Association of Nigeria (BDAN) has offered to work with the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation in a strategic partnership for the implementation of reforms in the banking sector.
BDAN is the umbrella body of non-executive directors of banks established to provide a forum for improving the knowledge and the competence of Bank Directors, thereby promoting honorable practice within the Banking Industry in Nigeria.
The Association affirmed its commitment to effective implementation of reforms in the sector, when its Governing Council visited the CBN Governor, Mallam Lamido Sanusi Lamido and the Managing Director/Chief Executive, NDIC, Alhaji Umar Ibrahim.
The Council commended both regulatory bodies for the various reforms initiatives in the banking industry, as well indicated readiness to contribute to the achievement of the goal of a stable and healthy banking industry. The Council also presented the report of the Survey on Directors’ Compensation recently conducted by the Financial Institutions Training Centre (FITC) for the Association and BDAN’s first official newsletter.
Speaking at the visit to the CBN Governor, President of the Association, and Chairman, Ecobank, Olor’ogun Dr. Sonny Kuku said, “ BDAN can be the needed catalyst to ensure the implementation of the proffered solutions to the challenges of the sector”, BDAN”s President, Olor’ogun Sonny Kuku said during the visit to the CBN Governor.
“We at BDAN recognize and align with the various reforms which have been introduced by the CBN. However, implementation is thought to be the greatest challenge. It is in the areas of implementation of the well thought out solutions to FSS challenges and its improvement that BDAN can be a strategic partner since BDAN is made up of representatives of the owners of the business of the FSS in Nigeria,” he said.
Specifically, he said BDAN is ready to collaborate with the regulatory bodies in the area of training and recruitment of banks’ staff, including continuous training of Bank directors, effective functioning of credit bureaus and compliance with Customer Due Diligence, and creation of specialized courts.
In response, the CBN Governor, commended the Association for its role in the industry especially the recently conducted survey on directors’ compensation and its readiness to partner with regulatory bodies in the industry. He said, “If directors are well compensated, they would devote time to do the work well.” He added that honest feedback from directors/BDAN on CBN initiatives will go a long way to help the industry.
Receiving the BDAN Council at the NDIC headquarters, Alhaji Umir Ibrahim congratulated the Council for the first edition of the BDAN Newsletter. He stated that the remuneration report is quite timely because compensation in the industry is a very peculiar issue.
He noted that affordability and sustenance are key factors that should be considered when discussing remuneration. He was of the view that payment of directors of banks peanuts should be a thing of the past and it should follow the banks’ policies.