NDIC, Reps move to shore up banking safety net after recapitalisation

By Onu Okorie

 Nigeria Deposit Insurance Corporation and the House of Representatives Committee on Insurance and Actuarial Matters have moved to deepen protection for Nigeria’s financial system, barely months after the conclusion of the banking sector recapitalisation exercise.

The move formed the highlight of a stakeholders’ retreat in Lagos, where more than 60 members of the House committee met with NDIC officials to review the outcomes of the recapitalisation programme and confront fresh risks posed by financial technology.

The retreat was themed, “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation.”

Speaking at the event, NDIC Managing Director and Chief Executive Officer, Mr. Thompson Sunday, said the successful conclusion of the recapitalisation exercise on March 31, 2026, must now be matched by stronger governance, tighter risk management and firmer regulatory compliance across the industry.

He warned that fresh capital alone could not guarantee a safe banking sector.

“While recapitalisation enhances the resilience of financial institutions, it must be complemented by effective regulation, sound governance practices, strong risk management frameworks and good compliance culture, all attributes of a reliable financial safety net,” Sunday said.

Also speaking, Chairman of the House Committee, Ahmadu Jaha, said stronger bank capital must go hand-in-hand with effective supervision and robust depositor protection.

He said the post-recapitalisation era demanded closer coordination among institutions saddled with safeguarding financial stability.

“Stronger capital must be complemented by stronger supervision, effective deposit insurance, sound corporate governance, enhanced crisis management arrangements, and improved coordination among members of the financial safety net,” Jaha said.

Stakeholders at the retreat also turned their attention to the growing influence of financial technology on the banking system, with discussions centred on emerging risks and the urgent need for regulators to build capacity to respond to fast-moving technological change.

The retreat underscored the need for closer collaboration between lawmakers and financial-sector regulators, stakeholders said, to ensure that the gains from recapitalisation translate into greater stability, stronger depositor confidence and a more resilient Nigerian banking system.