No depositors fund was lost to Nigeria’s recessions — Finance Minister

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, said that no depositors fund was lost during the two economic recessions in Nigeria that happened in the space of five years (2016-2020).

Speaking at the on-going International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Technical Assistance Workshop hosted by the Nigeria Deposit Insurance Corporation (NDIC) in Abuja, Ahmed said: “The Nigerian economy, like others, felt the brunt of the global economic distortion, having to go into recession twice in the space of five years.

“However, given the resilience of the nation’s financial system, we came out within months.

“We also make bold to say that despite these economic challenges, no depositors’ fund was lost given the effectiveness of our agencies, most especially the Central Bank of Nigeria, CBN and the NDIC”.

She acknowledged the banking sector pivotal support in the real economy through the provision of innovative products and services to all relevant stakeholders but expressed concern on its fiduciary nature.

In her welcome address, the Board Chairman NDIC, Mrs Ronke Sokefun, said that though the Nigerian banking system has shown resilience despite the challenges posed by the pandemic, there is the need for robust cooperation to ensure financial system stability in a world where financial systems are now inextricably linked

(Vanguard)