The management of the Nigeria Deposit Insurance Corporation (NDIC), on Monday described last Wednesday’s call by Dr. Ndi Okereke-Onyiuke, former Director-General of the Nigerian Stock Exchange (NSE) for merger of the corporation with the Asset Management Corporation of Nigeria (AMCON) as a display of ignorance,’ besides being unfortunate.
The corporation, in a statement noted that its mandate and scope of operations as deposit insurer is “far beyond such narrow scope as was ignorantly painted by Mrs. Okereke-Onyuike.
“Hence, the call for the merger of the NDIC and AMCON is misplaced and totally uncalled for,” showing what it called a clear lack of adequate understanding of the roles of the NDIC in the nation’s financial system, widely acknowledged since 1988.”
For instance, the NDIC stressed that it does not live off government subvention as it remits its operating surplus into the federal treasury regularly.
Mrs. Okereke-Onyuike was quoted as calling on the Federal Government during a book launch in Lagos to merge NDIC with AMCON because their mandates were similar.
“She further alleged that the NDIC relied on government subvention for its operational activities but lacked the capacity and efficiency to execute its mandate,” adding that the mandates of both organisations are different.
“It should be noted that contrary to Mrs. Okereke-Onyuike’s assertion, the NDIC does not enjoy any government subventions. Its income is derived from investment of insurance premium paid by the insured banks. In fact, the Corporation has been remitting billions of Naira of its annual operating surpluses to the Federal Government as required by the Fiscal Responsibility Act,” the statement added.
For the avoidance of doubt, the NDIC management recalled that “AMCON was purposely set up to purchase toxic assets from the banking institutions and engage in debt recovery of such non-performing loans.