The Nigeria Deposit Insurance Corporation (NDIC) is playing a preeminent role in contributing to the objectives of the National Financial Inclusion Strategy (NFIS) through the provision of deposit insurance coverage to depositors of licensed banks.
The corporation said its activities through the supervision of banks, not only enhance depositors’ confidence in the financial system but also serves as an incentive for the unbanked to access the financial services of licensed banks.
According to a statement,the agency has also been at the forefront of the implementation of the NFIS in Nigeria as a member of the National Financial Inclusion Governance Committee headed by the Central Bank of Nigeria (CBN).
The statement added that the corporation is also part of the efforts to further enhance the attainment of national financial inclusion targets as the National Financial Inclusion Governance Committee prepares to host the maiden International Financial Inclusion Conference 2022 scheduled to take place between the 24th and 25th of November 2022 in Abuja, Nigeria.
With the theme “Financial Inclusion for all: Scaling Innovative Digital Models”, the conference is the first to be held since the launch of the NFIS in 2012,the statement said.
The statement said NFIS sets the target of reducing the percentage of adult Nigerians that do not have access to financial services from 46.3 per cent in 2010 to 20.0 per cent in 2020.
Since the launch of the NFIS, stakeholders have achieved great strides in achieving financial inclusion objectives which have resulted in the exclusion rate dropping from 46.3 per cent in 2010 to 35.9 per cent in 2020.
The corporation has contributed significantly to the nation’s financial Inclusion objectives through the provision of deposit protection to all licensed deposit-taking institutions via its deposit insurance. It is important to note that quite a number of the financially excluded individuals failed to join the formal financial system due to fear of possible loss of their savings from bank failure which the deposit insurance of the NDIC addresses.
Other areas through which the corporation supports financial inclusion include supervision and failure resolution of licensed deposit-taking institutions thereby engendering public confidence, enforcement of regulatory policies, entrenching enhanced risk management practices to improve financial stability through differential-premium assessment system (DPAS), and monitoring of fraud in the banking system thereby supporting financial inclusion.
Apart from being a member of the Financial Literacy Steering Committee (FLSC) and Financial Literacy Implementation Committee (FLIC), NDIC has also undertaken financial literacy education through press briefings, advertorials, jingles on radio and television, participation in trade fairs and exhibitions as well as participation in the World Savings Day, among others, to promote public confidence.
In recognition of the role of electronic and mobile money as a critical tool for financial inclusion, the Corporation extends a deposit guarantee to subscribers of Mobile Money through its Pass-Through Deposit Insurance while it also promotes competition among deposit-taking institutions.
This is important in driving financial inclusion as smaller institutions like MFBs, PSBs, MMOs, with no brand visibility that are closer to the unserved/underserved can compete favourably with the larger banks by virtue of the deposit protection offered by the NDIC which makes the depositors feel safe and protected.
Besides,the corporation has developed a Single Customer View (SCV) platform to eliminate delays in reimbursing depositors of failed deposit-taking institutions, upon revocation of their license by the CBN.
Currently, the financial sector has experienced rapid expansion and diversity of financial services and products deployed within the Fintech ecosystem. This presents significant opportunities to further fast track the expansion of financial inclusion to a greater number of Nigerians by enabling them to have access to financial services that would address their needs and enhance their quality of life.
The statement said the International Financial Inclusion Conference 2022 presents a unique opportunity to showcase advancements in financial inclusion in Nigeria, spotlights other jurisdictional experiences, and will serve as a platform for policymakers, financial institutions, and other stakeholders to engage on contemporary issues such as innovation, digital technology, and the role of collaboration in achieving financial inclusion for all Nigerians.