Business Briefs
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THE Nigeria Deposit Insurance Corporation, NDIC, has faulted the call by Ndi Okereke-Onyuike, former director-general, DG, Nigerian Stock Exchange, NSE, that the corporation should be merged with the Asset Management Corporation of Nigeria. In a statement issued in Abuja, the corporation described the remarks of the former NSE DG as unfortunate.
The statement described the assertion of Okereke-Onyuike as “a glaring indication that the ex-DG NSE clearly lacked adequate understanding of the roles of the NDIC in the Nigerian financial system, which has been widely acknowledged over the last 27 years.”
The statement said while the former NSE boss was of the view that the NDIC was getting subventions from the government, its income was derivable from the investment of insurance premium paid by insured banks.
It observed that the mandate of AMCON is quite different from that of the NDIC even though the later sits on the board of AMCON and contributes its technical knowledge, expertise and experience in distress resolution.
“In fact, the corporation has been remitting billions of naira of its annual operating surpluses to the federal government as required by the Fiscal Responsibility Act. The NDIC’s mandate and scope of operations are far beyond such a narrow scope as was ignorantly painted by Okereke-Onyuike. Hence, the call for the merger of the NDIC and AMCON is misplaced and totally uncalled for.”
In a speech during a book launch in Lagos, Okereke-Onyuike had called on the federal government to merge the NDIC with AMCON as their mandates were similar. She also claimed that the NDIC relied on government subvention for its operational activities but lacked the capacity and efficiency to execute its mandate.
— Nov 28, 2016 @ 01:00 GMT
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