COVID-19: NDIC Urges Banks to Restructure Credits

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The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Umaru Ibrahim has urged banks to restructure loans taken by customers in a bid to give some relief, considering challenges in the global economy.

Ibrahim, said this at the weekend, during a sensitisation workshop for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.

He said that the federal government, the Central Bank of Nigeria as well as the NDIC were working tirelessly in ensuring economic stability as well as stability of the banking sector.

In his opening remarks at the workshop, the NDIC boss said: “Are we going to experience a situation where borrowers cannot repay due to what is happening? And if so, we would expect the banks to reorganise their credit administration such that they can give some respite to borrowers because that is only a natural consequence.

“For the NDIC, as being mandated to help in ensuring safety and confidence in the banking system, we are interested in what is happening and we would continue to do our best to ensure that we supervise the banks so that they can weather the storm.”

Speaking further, he said: “I want to assure Nigerian depositors and members of the public in general and we are collaborating with the central bank. We would make sure that the banks are effectively supervised and assisted so that they can weather the storm.

“The central bank has issued various policy statements and programs that are supposed to assist those who have borrowed funds from the intervention programs through the CBN, so that they can have respite.

“And we expect the banks to also restructure their loans such that they give some respite to their customers in view of the difficulties everybody is facing.”

Speaking on the purpose of the workshop, he said: “This is the first time we are engaging with the House of Representatives Committee on Insurance and Actuarial Matters and the purpose is to sensitise them and to take them through issues relating to banking supervisions and generally and the role of deposit insurance.

“This is so that they can appreciate our role and understand what we do and how we do things and also how we create and sustain value so our banks remain healthy, stable to help them play their role in the economic development of the country especially in this very difficult and trying times.”

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