Nigeria reforms fiscal, monetary policies through NDIC

The Director-General of Bureau of Service Reform (BPSR), Mr Dasuki Ibrahim Arabi has said that the Federal Government is promoting fiscal and monetary policy of the country through the Nigeria Deposit Insurance Corporation (NDIC).

The agency, according to him, was established to curtail economic disruptions that typically follow bank failures and ensure depositors’ money are safe.

Dasuki was speaking at a monthly lunchtime seminar series organised by the bureau which held at the main auditorium of the Federal Ministry of Finance, Abuja.

According to him, “As you are aware, a stable banking system together with the various initiatives implemented over time to foster financial system stability are important enablers of the growth and development of the economy. Establishment of NDIC is one of these measures.

“NDIC supervises banks so as to protect depositors; foster monetary stability; promote an effective and efficient payment system; and promote competition and innovation in the banking system. The corporation is also charged with protecting the banking system from instability occasioned by runs and loss of depositors’ confidence.

“The NDIC further advises the CBN in the liquidation of distressed banks and manages distressed banks’ assets until they are fully liquidated,” the DG added.

He said the topic selected for this month’s discussion, “Roles, Responsibility and Contributions of the Nigeria Deposit Insurance Corporation (NDIC) to the Growth and Development of Nigerian Economy” is timely and relevant in view of the importance of the safety of individual and corporate depositor’s funds to the financial stability of the Nigerian Economy.

He also explained that the bureau has initiated National Strategy for Public Service Reform (NSPSR) as part of its drive to achieve a world-class public service delivering government policies effectively and implementing programmes with professionalism, integrity, excellence, and passion to rebuild and transform the federal public service

He said, “The NSPSR is designed to clearly identify strategic sectors of government business desiring reforms, the current weakness therein and proffer workable solutions.

“Pillar three of the strategy deals with Public Financial Management Reform, whose development objective is to achieve strategic, efficient, and effective mobilization, allocation and use of public resources, fiscal discipline, transparency, accountability through timely reporting and integrity in the use of public funds.

“In the course of implementing this Pillar, great emphasis will be placed on effective fiscal and monetary management as well as their proper alignment in order to promote the desired improvements in macroeconomic performance.

“Fiscal management will, as much as practicable, be expansionary; with the government expanding current expenses and ensuring exceptional allocations to capital projects while still achieving small fiscal surpluses and satisfying all critical debt sustainability indicators.

“Government will use all fiscal and monetary policy tools at its disposal to encourage lending by deposit money banks, increase private sector investment, reduce wastages and corruption, expand export promotion, enhance non-oil revenue generation, promote economic diversification, ensure general price stability, promote exchange rate stability, ensure investment-friendly interest rates, expand employment a as well as accelerate economic growth and achieve development in the National Economy.”

Also speaking, the NDIC MD/CEO, Mr. Bello Hassan said since its establishment by the enactment of the Decree No 22 of 1988, now repealed and re-enacted as NDIC Act No 16 of 2006, the agency seeks to reduce the potential of failure and ensures that unsafe and unsound banking practices do not go unchecked.

Hassan said in the last 32 years, NDIC’s efforts at engendering public confidence, promoting financial system stability and economic growth in Nigeria has been gratifying despite the challenges facing it.

The BPSR lunch time seminar is one of the avenues through which the bureau periodically informs the public in order to strengthen reform initiatives as well as the programs of the Federal Government.

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