Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has identified the critical role the Institute of Directors (IoD) could play towards addressing the poor corporate governance practices that have posed a significant risk to the safety and stability of the Nigerian banking sector.
Ibrahim made the remarks while receiving the Members of the Governing Council, Institute of Directors Nigeria (IoD) ledd by its Chairman and IoD President, Alhaji. Rufai Ahmed Mohammed, during a courtesy visit to the Corporation.
The NDIC boss indicated that the issue of corporate governance was still central to the public discourse in Nigeria since the 2009 banking crisis when the joint Central Bank of Nigeria (CBN) and NDIC Joint Special Examination of the 24 banks in the system exposed the subject as one of the fundamental flaws of the nation’s banking system.
Ibrahim however, stressed the need for the IoD to step up efforts towards developing a more transparent and rigorous selection system for independent Directors in banks as well as strengthening their capacity through continuous training focused on international best practices, excellence in management and service delivery, environmental sustainability and inclusive growth.
He added that this would not only contribute towards better quality of corporate governance but also build a solid foundation of businesses.
While assuring IoD of the Corporation’s readiness to partner with the institute, Ibrahim advised the IoD to collaborate with the CBN, Financial Institutions Training Centre (FITC), the Society for Corporate Governance (SCG), and the Chartered Institute of Bankers (CIBN) in promoting capacity building for Independent Directors especially of banks.
He expressed the desire to also collaborate with the Institute towards building capacity of the Corporation’s Management most of who were engaged in bank examination in order to appreciate the dynamics of board performance.
Earlier in his remarks, the President of the IoD Governing Council, Alhaji. Rufai Ahmed Mohammed said the courtesy visit was part of the Council’s initiative to promote collaboration and synergy with key institutions through effective interaction and advocacy. He also congratulated the NDIC for its contribution to the stability of the Nigerian banking system.
For a better society.