The Federal Government has urged the Nigeria Deposit Insurance Corporation (NDIC) and other regulatory bodies in the country’s financial sector to put in place pro-active mechanisms to ensure continued depositor protection and a safe and sound financial system that would minimise the impact of the falling oil prices on the economy.
Minister of State for Finance, Ambassador Basir Yuguda, said this in Abuja at the NDIC 25th anniversary gala/awards night. According to him, the situation of things now is reminiscent of pre-recession period some years ago. Hence, actions must be taken as a matter of urgency.
“While we celebrate on this auspicious occasion, I want us to spare a moment’s thought to some issues which are starring us in the face, and which may dictate our economic fortunes in time to come, because they will inevitably determine how well banks supervisors and regulators should prepare, position and pro-actively react to circumstances as they occur.
“Another time for caution is here. Red-flashes have once again appeared on the global horizon, which we must as a nation, take note of, and prepare for. Anyone or nation that does not learn from previous crisis is indeed unwittingly placing him/itself squarely in the line of fire. Similar events to those which heralded the most recent recession are once again playing out,” Yuguda noted.
Speaking further, the minister said “it is unfortunate to note that the falling oil prices have already begun to take a toll on us. We have seen in the most recent past, the value of the naira battling to remain at a reasonable level against other foreign currencies. This is already having an effect on our 2015 budget by ways of the announced cuts and belt-tightening measures.
“I call on NDIC to once again rise up to this challenge as always. You must ensure that you put in place pro-active mechanisms to ensure continued depositor protection and sound economic system,” he said.