NDIC wants operational independence for Ecobank Nigeria

The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim has advised Ecobank Transnational Incorporated (ETI) to ensure operational independence of its Nigerian subsidiary, Ecobank Nigeria.

This, Ibrahim said, would enable ETI benefit fully from the bank and also consolidate on the gains achieved from the on-going restructuring of the bank.

Speaking in Abuja, while receiving the Chairman, ETI, Mr. Emmanuel Ikazoboh, who led other members of the board, including the Managing Director, Ecobank Nigeria Plc, Mr. Jibril Aku on a courtesy visit to the Corporation, Ibrahim stressed the need for an arm’s length relationship between the ETI Group and its Nigerian subsidiary.

He said the fact that the Nigerian entity constituted about 45 per cent of the total assets of Ecobank Group means that its significance in the group could not be overemphasised.

He pointed out that the supervisory authorities would like to see a transparent shared services agreement in which the Group’s operational activities would not continue to be at the expense of the Nigerian entity.

The NDIC boss also expressed delight over the recent restructuring and re-composition of the ETI’s Board, noting that the recent divestment of the Asset Management Corporation of Nigeria’s (AMCON’s) investment from the Nigerian subsidiary, which had been successfully taken over by the Qatar National Banking Group.

He expressed the hope that the development would go a long way in enhancing the operations of the Ecobank Group.

In his remarks, Ikazoboh pledged that the Ecobank Group would continue to operate efficiently, transparently and comply with all requirements of the supervisory and regulatory authorities.
He assured that with the restructuring of the board of ETI, all the corporate governance issues that were of concerns in the past had been addressed.

In a statement by Head, Communication and Public Affairs, NDIC, Alhaji Hadi Birchi, Ikazoboh disclosed that the board of Ecobank Nigeria was also being restructured to bring about more effective risk management, improved processes and procedures that would translate into more profitable performance for the bank.