NDIC seeks role in appointment of bank directors, Monday, 02 Apr 2012  
 

 

(The Guardian) The Nigeria Deposit Insurance Corporation (NDIC) will seek collaboration to control the appointment of Board Members of Banks in Nigeria. The Managing Director of the Corporation Alhaji Umaru Ibrahim, made the statement in Abuja at the weekend, when he received the Executives of Banks Directors Association of Nigeria (BDAN). He said it will be a worthy course to collaborate with them to "fish out those that are not fit to be on the board of Banks" as familiarity with the activities of the financial sector is a key component in taking decisions for the institutions. Alhaji Umaru said the constitution of board should not be based on the amount of money one has, or political consideration, but the quality of service, knowledge and integrity should be the guiding prerequisites. He cited the instance of the near collapse of the sector not too long ago due to "cross insider abuse" which he said "nearly maimed the banking sector".

He said the job of a director in any bank is quite tasking and functionally demanding, as such the Directors need reasonable compensation for their contributions, as long as "it is affordable and seen as appropriate by the Banks" and whatever that is decided must be in the interest of the depositors, "not self serving but justified". He cautioned that the NDIC must not be seen as dictation to the banks, but is just reasonable suggestion that is in consideration of the huge responsibility "on the shoulders of the Board Members". The President of the Association, Olo'rogun Dr. Sonny Kuku, said the Risk focused supervisory process implemented by the NDIC is well intended and is supported by the Association because it "presents a framework with which banks are assessed regarding the probability and impact of risks as opposed to the intuitive assessments by traditional approach." While reiterating the need for a review of remunerations for the directors, in a bid to correlate functions with compensation, Dr. Kuku said the bank directors are aware that "the risk based supervision treats risk mitigating and offsetting as valid approaches to risk management in contrast to the traditional form of supervision which is biased in favour of risk avoidance and hence against innovative products and services".

 

 
     
  Recent 10 Market News Headlines  
  Nigerian Banks to Inject $160m into Ibadan Disco(THISDAY)  
  2015 Budget: FEC Approves Medium Term Fiscal Framework(NigerianNewsWire)  
  Nigeria to Earn N30bn Annually from Slot Allocation(THISDAY)  
  EU to drive FDI growth in Nigeria with €600 million(TheGuardian)  
  M&A windows open as over 150 brokers weigh risks of licence loss(BusinessDay)  
  Niger Delta Exploration to Raise $450m through Public Offer(THISDAY)  
  EU Earmarks €600m for Nigeria's Power Sector, Food Security(THISDAY)  
  Asseco Group Enters Nigeria Software Solutions(THISDAY)  
  Minister Decries Offshore Outsourcing of Local Operations(THISDAY)  
  Interswitch, East Africa’s Paynet Group combine businesses(BusinessDay)