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NDIC calls for stiffer penalties against insider loans abuses

By Emma Ujah, Abuja Bureau Chief

Nigeria Deposit Insurance Corporation (NDIC) has called for stiffer penalties against insider loans abuses in the nation’s banking industry.  Managing Director/Chief Executive of the Corporation, Alhaji Umaru Ibrahim made this call while receiving the newly elected President and Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola, at the NDIC headquarters in Abuja, at the weekend.

Ibrahim said that those involved must be severely punished in order to halt the increasing wave of non-performing insider loans in various banks and its consequence on the stability of the banking system. He said: “The development poses credibility questions which are capable of eroding public confidence in the banking system.” The NDIC boss therefore, called for strict compliance with the existing code of conduct and a review of the existing laws and regulations to provide stiffer penalties for Directors who take advantage of their positions and failed to pay back their Loans.

He  also frowned at the large casual staff strength in the banks, whom, he said, accounted for about 25 per cent, adding that  dependence on casual staff has a negative impact on the industry, as some banks assign sensitive roles to casual staff; thereby exposing the banking industry to cases of fraud and forgeries. He  emphasized that his organisation would continue to partner with the CIBN and other professional bodies towards achieving effective capacity building among its staff.

Alhaji Ibrahim disclosed that 77 members of staff of the Corporation were currently undergoing the Bangor/CB MBA programme which commenced three years ago. The Bangor/CB MBA programme is an initiative of the NDIC, the CIBN and the Bangor University, Scotland where staff of the Corporation undergo up to 24 months training programme and graduate with dual certification: an MBA and Chartered Banker of Scotland.

Fourteen members of staff had already graduated from the programme. He further requested the CIBN to fast track the accreditation of the Corporation’s Training Academy and the introduction of the deposit Insurance System (DIS) in the institute’s curricula in order to broaden the scope of professionalism in the banking industry. Responding, the Ajibola, expressed the appreciation of the CIBN to the Corporation for positive contributions to the activities and programmes of the institute and its support towards the establishment of the CIBN Bankers House in Abuja.



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