Year 2017 Annual Report and Statement of Accounts
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Annual Report FOR THE YEAR ENDED DECEMBER 31, 2017 NDIC ANNUAL REPORT 2017 Vision To be the best deposit insurer in the world by 2020. Mission To protect depositors and contribute to the stability of the financial system through effective supervision of insured institutions, provision of financial and technical assistance to eligible insured institutions, prompt payment of guaranteed sums and orderly resolution of failed insured financial institutions. Core Values In its commitment to the public service, the NDIC's Core Values are: v Honesty; v Respect & Fairness; v Discipline; v Professionalism; v Team work; and v Passion. iii NDIC ANNUAL REPORT 2017 MEMBERS OF THE EXECUTIVE COMMITTEE Alh. Umaru Ibrahim, FCIB, mni. Managing Director/Chief Executive Officer Prince Aghatise Erediauwa Hon. Omolola Abiola-Edewor Executive Director (Operations) Executive Director (Corporate Services) v NDIC ANNUAL REPORT 2017 ORGANISATIONAL STRUCTURE BOARD OF DIRECTORS INTERNAL MANAGING DIRECTOR/ LEGAL DEPARTMENT/ AUDIT CHIEF EXECUTIVE OFFICER BOARD SECRETARIAT DEPARTMENT EXECUTIVE DIRECTOR EXECUTIVE (CORPORATE SERVICES) DIRECTOR (OPERATIONS) FINANCE STRATEGY DEPARTMENT DEVELOPMENT INSURANCE & DEPARTMENT SURVEILLANCE HUMAN RESOURCE DEPARTMENT DEPARTMENT RESEARCH, POLICY & BANK EXAMINATION PROCUREMENT & INTERNATIONAL DEPARTMENT MANAGEMENT SERVICES RELATIONS DEPARTMENT DEPARTMENT CLAIMS ENTERPRISE RISK RESOLUTION NDIC ACADEMY MANAGEMENT DEPARTMENT DEPARTMENT ENGINEERING AND ASSET MANAGEMENT TECHNICAL SERVICES DEPARTMENT DEPARTMENT COMMUNICATIONS & PUBLIC AFFAIRS UNIT PERFORMANCE SPECIAL INSURED MANAGEMENT UNIT INSTITUTIONS DEPARTMENT ESTABLISHMENT INFORMATION OFFICE, LAGOS TECHNOLOGY DEPARTMENT vi NDIC ANNUAL REPORT 2017 HEADS OF DEPARTMENT/UNIT Mr. B. D. Umar - Director, Asset Management Mr. A. A. Adeleke - Director, Bank Examination Mr. M. A. Ahmed - Director, Human Resource Ms. D. O. Okonta - Director, Finance Mr. J. J. Etopidiok - Director, Special Insured Institutions Mr. A. S. Bello - Director, Claims Resolution Mr. F. O. Ekechi - Director, Strategy Development Mr. M. Y. Umar - Director, Research, Policy & International Relations Mr. B. A. Taribo - Director, Legal & Secretary to the Corporation Mr. A. G. Longe - Director, Internal Audit Mr. P. H. Ngadda - Director, Enterprise Risk Management Dr. S. A. Oluyemi - Director, MD's Office Mr. S. Magaji - Director, Procurement & Management Services Dr. A. B. Okoro - Director, NDIC Academy Mr. E. A. Esangbedo - Deputy Director, Performance Management Mr. G. Y. Gana - Deputy Director, Insurance & Surveillance Mr. H. S. Birchi - Deputy Director, Communications & Public Affairs Mr. C. A. Ehizokhale - Deputy Director, Engineering & Technical Services Mr. I. Uhunmwagho - Assistant Director, Information Technology Mr. S. I. Itamunoala - Assistant Director, Establishment Office, Lagos vii NDIC ANNUAL REPORT 2017 HEAD OFFICE Plot 447/448 Constitution Avenue Central Business District P.M.B. 284 Abuja, Nigeria Tel: 09-4601380-9. Fax: 09-4601426 Call Toll Free: 080063424357 E-mail: [email protected] Website: www.ndic.gov.ng Lagos Office NECOM House No. 15, Marina Street Lagos Island, Lagos State Tel: 01-2719010, 01-2719011. ZONAL OFFICES Bauchi Zonal Office Kano Zonal Office Plot No 3, Abdulkadir Ahmed Road Plot 458, Muhammad Muhammad Street P.M.B 207, Bauchi Off Maiduguri Road Tel: 09020441970, 09020441971, Hotoro, GRA, Kano 09020441972, 09020441975 Tel: 08097756130, 08126657022 08063932722, 09092748222 Benin Zonal Office 28A & B, Benoni Road Port-Harcourt Zonal Office Off Airport Road, G.R.A. No. 104, Woji Road P.M.B. 1043, Benin Off Olu Obasanjo Road Benin City GRA Port-Harcourt Tel: 08150999600, 08150999599, Tel: 09090726737, 07081062700, 08150999588 08084291777 Enugu Zonal Office Sokoto Zonal Office No. 10, Our Lords' Street No. 2, Gusau Road Independence Layout Opp. NNPC Mega Station P.M.B. 1210, Enugu Sokoto Tel: 07059763471 Tel: 07055769606, 09036453305 09035795104, 09036251402, 08069619954 Ilorin Zonal Office No. 12A, Sulu Gambari Road Yola Zonal Office Ilorin No. 6, Numan Road Tel: 08023123185, 09074788880 Jimeta – Yola 08187960908 Adamawa Tel: 08089814004, 08089814005 08089814006, 08089814007 08037023360 viii NDIC ANNUAL REPORT 2017 ABBREVIATIONS USED IN THIS REPORT S/N ABBREVIATION NAME OF INSTITUTION ADR Alternative Dispute Resolution 1 AMCON Asset Management Company Of Nigeria 2 AMD Asset Management Department 3 ARC Africa Regional Committee 4 ASCE Abuja Security & Commodities Exchange 5 6 ATM Automated Teller Machine 7 BED Bank Examination Department BSC Balanced Score Card 8 9 BGF Bank Guarantee Fund 10 BOFIA Banks and Other Financial Institutions Act 11 BZO Benin Zonal Office 12 CBN Central Bank of Nigeria 13 CIBN Chartered Institute of Bank ers of Nigeria 14 CRD Claims Resolution Department 15 CAC Corporate Affairs Commission DI Deposit Insurance 16 17 DIF Deposit Insurance Fund 18 DIS Deposit Insurance System 19 D-SIB Domestic-Systemically Important Bank 20 DMB Deposit Money Bank 21 DMO Debt Management Office 22 DPFB Deposit Protection Fund Board 23 DFI Development Finance Institution DPAS Differential Premium Assessment System 24 25 DSS Directorate of State Security 26 EWS Early Warning System 27 EDMS Electronic Document Management System 28 e-FASS Electronic-Financial Analysis and Surveillance System e-FILMS Electronic-Financial Institutions Liquidation Management 29 System 30 EFCC Economic & Financial Crimes Commission 31 ERM Enterprise Risk Management 32 ERMS Enterprise Risk Management System 33 EZO Enugu Zonal Office 34 Failed Banks Act Failed Banks (Recovery of Debts and Other Financial Malpractices in Banks Act) 1994 35 FDIC Federal Deposit Insurance Corporation 36 FinA Financial Analysis ix NDIC ANNUAL REPORT 2017 S/N ABBREVIATION NAME OF INSTITUTION 37 FIRS Federal Inland Revenue Service FMF Federal Ministry of Finance 38 39 FMIU Fraud, Monitoring and Investigation Unit 40 FICAN Finance Correspondents Association of Nigeria 41 FSS 2020 Financial System Strategy 2020 42 FSRCC Financial Services Regulation Coordinating Committee 43 FSN Financial Safety Net 44 FRA Fiscal Responsibility Act 45 GDPC Ghana Deposit Protection Corpor ation HKDPB Hong Kong Deposit Protection Board 46 47 ICPC Independent Corrupt Practices and Other Related Offences Commission 48 IFI Insured Financial Institution 49 IoD Institute of Directors 50 ITDR Information Technology Disaster Reco very 51 ITSSA Information Technology Securit y Systems and Architecture 52 IADI International Association of Deposit Insurers 53 IFRS International Financial Reporting Standard KDIC Korea Deposit Insurance Corporation 54 55 KZO Kano Zonal Office 56 MFB Microfinance Bank 57 MLA Money Laundering Act 58 M & A Mergers & Acquisitions 59 MPC Monetary Policy Committee 60 MPR Monetary Policy Rate 61 MSME Micro, Small and Medium Enterprise NAICOM National Insurance Commission 62 NBLR Nigerian Banking Law Report 63 64 NDIC Nigeria Deposit Insurance Corporation 65 NFIU Nigerian Financial Intelligence Unit 66 NHIS National Health Insurance Scheme 67 NIB Non-Interest Bank 68 NIDIF Non-Interest Deposit Insurance Fund 69 NJI National Judicial Institute NPL Non-Performing Loan 70 71 NSE Nigerian Stock Exchange 72 OFI Other Financial Institution 73 OTA Office of Technical Assistance 74 PENCOM National Pension Commission 75 PFA Pension Fund Administrator x NDIC ANNUAL REPORT 2017 S/N ABBREVIATION NAME OF INSTITUTION 76 PMS Performance Management System 77 PMB Primary Mortgage Bank 78 P&A Purchase and Assumption 79 PPO Public Policy Objective 80 RAE Risk Asset Examination 81 RBE Risk-Based Examination 82 RBS Risk-Based Supervision 83 SB Sustainable Banking 84 SIB Systemically Important Bank 85 SBN Savannah Bank of Nigeria 86 SEC Securities and Exchange Commission 87 SFU Special Fraud Unit 88 SGBN Societe Generale Bank of Nigeria SIIF Special Insured Institutions Fund 89 90 TSA Treasury Single Account 91 UDIC Uganda Deposit Insurance Corporation xi NDIC ANNUAL REPORT 2017 REPORT OF THE MANAGING DIRECTOR/CEO It is with utmost pleasure that I present to you the report of activities of the Nigeria Deposit Insurance Corporation (NDIC) for the year ended 31st December, 2017. The activities of the NDIC in 2017 were carried out within the framework of the 2016-2020 Strategic Plan. The report reviewed key developments in the macroeconomic and socio-political environment and discussed their implications for the Nigerian banking industry as well as the activities of the NDIC. The overall global economic activity experienced relative Mr. Umaru Ibrahim, FCIB, mni. upswing momentum in 2017 with a GDP growth rate of 3.7%. Managing Director/CEO The growth was driven by the strengthening of financial markets, and improvement in trade and manufacturing sectors, amongst others. Furthermore, inflationary pressures continued due to the recovery in the commodities market and rise in the prices of raw materials. Other factors that also helped shape the global economy were the monetary policy normalisation in the US and the gradual unwinding of monetary stimulus by many central banks. On the domestic scene, the Nigerian economy rebounded from economic recession in Q2 2017 with a GDP growth rate of 0.72%, and sustained the positive growth trajectory in Q3 and Q4 with growth rates of 1.4% and 1.92%, respectively. Overall, the economy recovered by recording an annual real GDP growth rate of 0.83% in 2017, compared with a negative growth rate of 1.5% in 2016. In nominal terms, the economy recorded an annual growth rate of 12.05% in 2017, against 7.80% recorded in 2016.