The Senate Committee on Banking, Insurance, and Other Financial Institutions has urged the newly appointed leadership of the Nigeria Deposit Insurance Corporation to prioritise early risk detection to protect depositors’ funds in the banking sector.

Speaking at the opening of the 2025 NDIC Retreat in Niger State on Monday, Committee Chairman Senator Mukhail Abiru emphasised the importance of proactive measures to prevent financial crises, rather than reacting after institutions have already failed.

The new Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Dr. Oludare Sunday, affirmed the corporation’s commitment to strengthening its risk management framework in response to emerging threats, including cybersecurity challenges.

Director of the Institute of Capital Market Studies at Nasarawa State University, Keffi, Professor Uche Uwaleke, called on the Senate Committee to pursue forward-looking reforms in Nigeria’s deposit insurance system by amending the NDIC Act 2023.

He noted that the proposed amendments would modernise the country’s deposit protection framework and bring it in line with the core principles of the International Association of Deposit Insurers.

Senator Abiru noted that in light of the rising incidence of cyber threats and digital vulnerabilities in the financial system, the NDIC must enhance its risk management systems and uphold a heightened state of vigilance.

He stated, “We live in rapidly changing times. Beyond the usual challenges banks face, we are also dealing with cyber-attacks and other risks.

“I am sure you are already thinking of how to incorporate risk management to address these issues in the banking sector, which you are now beginning to oversee.”

The lawmaker assured the NDIC of sustained legislative support to empower the agency in effectively carrying out its mandate.