Business Hilights
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NDIC silent on $7bn bailout recovery plan, seeks ethical banking standards

Contrary to general believe that the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN), through which the N620bn (about $7bn) bailout was lavishly given out to nine banks during the 2006 to 2008 banking shakeups will lead the process of its recovery, none of the agencies had made any comment on the matter since it was raised.
Business Hilights recalls that the embattled chairman of the Special Presidential Panel on Recovery of Government Assets and Properties’, Mr. Okoi Obono-Obla had earlier in the month, announced government’s ongoing investigations and plans to recover all bailout funds given to stressed banks in the wake of banking reforms during the time current Emir of Kano, Mallam Sanusi Lamido Sanusi was governor of the apex bank.
Rather in his first public appearance since the news broke, the Managing Director/Chief Executive Officer of NDIC, Umaru Ibrahim only appealed for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the banking industry.
Ibrahim, who refused to comment on the Presidential Panel plans to recover the bailout money, made the call during a courtesy visit by the council members of the Chartered Institute of Bankers (CIBN), lead by its President and Chairman, Dr. Uche Olowu.
However, making reference to the recent sanctions on four banks over Certificate of Capital Importation (CCI) crisis with MTN Nigeria, Ibrahim only expressed worries over cases of abuse of extant regulations and ethical standards, which have impacted negatively on the confidence level in the banking industry and the entire financial system.
He said such unethical breaches in illegal foreign exchange transfers have raised the need for a wake-up call for improved corporate governance and ethical behaviour by the banks.