NDIC, And The Imbalance In Nigeria’s Financial System

Recent findings coming from Nigeria Deposit Insurance Corporation (NDIC) has unearthed the imbalance in Nigeria’s financial system. It was revealed that 2, 512, 531 depositors, or six  per cent of those who placed their money in the Deposit Money Banks in 2010 have NGN9.53tn or 88 per cent of the total NGN10.8tn bank deposits during the year.

Furthermore, 94 per cent or 41, 926, 817 bank customers deposited a paltry NGN1.211tn or 12 percent of the total deposit with the 24 DMBs within the period under review. This is clear reflection of how imbalanced our financial system is. It goes to show how skewed our economy has become and it can go worse with recent policy thrust.

It also brings to the fore issues concerning the unbanked population and the growing informal economy with the tax revenue losses, ineffectual policies and the feared blackmarket.

Globally, the world is challenged seriously by such skewed financial systems, with poverty gap widening and inequality growing. Nations are beginning to look at this critical. We can begin to address this fallout too.

Above all, it draws our attention to burgeoning poverty gap and its implications for our beloved society. With such financial system imbalance, our society is very much threatened and this revelation has given credibility to recent happenings across our country. If we are to survive the next decades, we have to curb this extending imbalance. We have to check financial market recklessness and also make poverty alleviation work. In the face of this recent finding, we can muster up the courage to challenge this threat. It begins with us.