Government Policies & Politics, Insurance News in Nigeria

NDIC creates deposit insurance for non-interest banking

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The Nigeria Corporation on Wednesday said it had developed a non-interest framework for that segment of the banking sector.

It said the framework was designed to create a level playing field and provide deposit protection for depositors involved in and protect them against possible losses.

The Managing Director, , Alhaji Umaru Ibrahim, stated these when the management team of Jaiz Bank Plc visited him at the corporation’s headquarters in Abuja

A statement from the corporation signed by the Head, Communications and Public Affairs Unit, Alhaji Hadi Birchi, explained that Ibrahim noted that the was in the process of appointing a committee of experts to advise it on all issues relating to the scheme for .

He, however, noted that the dearth of viable investment windows and other Sharia-compliant investment portfolios would require collaboration between the Central Bank of Nigeria, Debt Management Office, Securities and Exchange Commission and the Infrastructure Concession and Regulatory Commission.

Ibrahim also noted the challenges facing the corporation due to lack of investment instruments for the premium collected from the non-interest banking subsector

The NDIC boss, according to the statement, congratulated the management of Jaiz Bank on the recent approval-in-principle licence it obtained from the CBN to become a national bank.

He tasked the bank to imbibe sound corporate governance practices and guard against insider abuse.

The Managing Director, Jaiz Bank Plc, Mr. Nurul Islam, informed the corporation that the bank had engaged the Bankers’ Committee and other stakeholders, especially the DMO, on the establishment of Sukuk Bond and other Sharia-permissible investment platforms for non-interest banks in Nigeria.

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