The Nigeria Deposit Insurance Corporation (NDIC) has called for restoration of banking services to the North Eastern zone of the country.

Managing Director/Chief Chief Executive, NDIC Alhaji   Umaru Ibrahim     made this call in Kano at   the corporation’s annual workshop for Business Editors and Finance   Correspondents   Association of Nigeria, tagged: “The role of Nigerian banking sector: opportunities, challenges and the way forward”.

Commenting on the low level of financial penetration in the North East zone, Ibrahim said, said there is need for the Governors of the North Eastern region to collaborate with the CBN on rebuilding the Financial Infrastructure in the region.

He said, “I think that there is the need for more collaboration between the Governors of the North East and the CBN on rebuilding the Financial Infrastructure in the North East. I will like a situation whereby we seat with the governors of the North East and go over all decisions because without them on this issue, without the collaboration not much can be achieved.”

Ibrahim also called on the CBN to provide incentives that will encourage banks to resume operations in the North East zone. He said: “It is necessary for the CBN to find a way for providing some incentives to the various banks, and other financial institutions in order for them to return to the North East.

“My feeling is that a lot of the bank key holders seating in Lagos comfortably, have actually forgotten about the potentials that exits in the North East. They are likely being wrong. We should make sure we awaken them so that they appreciate the business potential that exist in the N/E. I mentioned that we have the National assembly, very well. I   would like to say this with prudence well to add the National Assembly   to push the CBN to provide much needed incentives for the bank to come back to the North East. I want to assure us that we will take this up with the governor of the CBN.”

Speaking earlier at the workshop, Director, Development Finance Department, CBN, Dr. Mudashair   Olaitan disclosed that   financial penetration in the North Eastern part of the country has degenerated to 3.6 percent based on the insurgence of Boko Haram.

Represented by Deputy, Director, Development Finance Department, CBN,   Mr. Sanni Mohammed, Olaitan   said:   “The   North East   with an estimated population of 26.26 million has a low banking density and penetration with 188 Deposit Money Bank,45 Micro-Finance Banks and   nine   Primary Mortgage Banks   accompanied by declining access to electricity, education, financial services   and health care; 25 percent of adults have access to formal financial services   and   economic , social cultural, environmental and infrastructural challenges.

He said, “The North-East is key to the Nigerian economy, as it is a bastion of commerce and trade with prominent local enterprises and well-established trade routes across the Sahara.

“The region has a very high potential for agricultural development and   food security, as these agricultural offerings fit in to the Federal Government’s economic development and diversification agenda.”