Nigeria Set To Host Maiden International Financial Inclusion Conference
Elizabeth Christopher, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) says it has enhanced depositors’ confidence in the financial system, and is poised to do more, as the government concludes preparations to host the maiden International Financial Inclusion Conference 2022, from 24 to 25 November in Abuja, Nigeria.
The NDIC said more effort is being put in place to close the gap between the banked and unbanked people of Nigeria, as it also provides new ways for the unbanked to access financial services of licensed banks.
The Director, Communication & Public Affairs Department (NDIC), Bashir A. Nuhu in a statement in Abuja said that the Corporation plays a critical 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.
He disclosed that the National Financial Inclusion Governance Committee has concluded plans to ensure the conference, tagged, “Financial Inclusion for all: Scaling Innovative Digital Models” is a complete success as it is the first to be held since the launch of the NFIS in 2012.
“The NFIS set the target of reducing the percentage of adult Nigerians that do not have access to financial services from 46.3% in 2010 to 20.0% in 2020. Since the launch of the NFIS, stakeholders have achieved great strides in achieving financial inclusion objectives which has resulted in the exclusion rate dropping from 46.3% in 2010 to 35.9% in 2020’’.
He maintained that the Corporation has contributed significantly to the Nation’s financial Inclusion objectives through provision of deposit protection to all licensed deposit taking institutions via its deposit insurance.
He said the NDIC has allayed fears of possible loss of savings from bank failure.
“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.
“Financial Literacy which is critical in accelerating 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 deposit guarantee to Subscribers of Mobile Money through its Pass-Through Deposit Insurance.”
“The NDIC 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.”
The director also disclosed that 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.
“Presently, 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 have access to financial services that would address their needs and enhance their quality of life.
He added that 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.
