The Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) have embarked on a comprehensive supervision of the banking sector to ensure that the non-performing loan ratio remains below the maximum threshold established.

During a retreat organized to update the legislature on the activities of the NDIC, themed “Deepening Deposit Insurance Knowledge for Effective Legislative Functions,” Bello Hassan, the Managing Director of NDIC, informed lawmakers about the commencement of this supervisory effort.

Hassan acknowledged the resilience demonstrated by the Nigerian banking sector despite the challenges faced by the economy, emphasizing its ability to withstand the adverse effects.

He further highlighted that the current non-performing loan ratio remains below the maximum threshold set by the CBN, and the NDIC is actively working to ensure it remains within that limit.

Addressing potential risks in the banking sector will involve collaboration, enhanced supervision, and surveillance to maintain the robustness of risk assets.

The objective of the retreat is to familiarize lawmakers with the laws governing the NDIC, identify obstacles to the implementation of its mandate, and engage in productive discussions with the corporation’s management regarding the way forward.

Hassan emphasized the implementation of various measures by the NDIC and the CBN to ensure the soundness of the banking sector, including heightened surveillance to maintain the strength of risk assets.

In response, Mr. Mukhial Abiru, the Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, expressed the lawmakers’ commitment to supporting the NDIC in its oversight functions. He also acknowledged the impact of the depreciation of the naira on the balance sheets of banks.