The Managing Director/Chief Executive Officer, Nigeria Deposit Insurance Corporation, Alhaji Umaru Ibrahim, on Sunday called on the Institute of Directors, Nigeria to address the poor corporate governance practices posing a significant risk to the safety and stability of the country’s banking sector.

Ibrahim made the remarks during a meeting with members of the Governing Council of the IoD, led by its President, Alhaji Rufai Mohammed.

The NDIC boss stated that the issue of corporate governance was vital to the stability of banks, adding that the lack of it was the root cause of the banking sector crisis of 2009.

Ibrahim stressed the need for the IoD to step up efforts towards developing a more transparent and rigorous selection system for independent directors in banks as well as strengthening their capacity through continuous training focused on international best practices.

He said a sound corporate governance practice would promote excellence in management and service delivery, environmental sustainability and inclusive growth.

This, he noted, would help to also guarantee a solid foundation for businesses.

Ibrahim assured the IoD of the corporation’s readiness to partner the institute and urged it to collaborate with the Central Bank of Nigeria, Financial Institutions Training Centre, Society for Corporate Governance and the Chartered Institute of Bankers in promoting capacity building for independent directors.

He expressed the desire to also collaborate with the institute for building capacity of the corporation’s management staff, most of whom were engaged in bank examination, in order to appreciate the dynamics of board performance.

In his remarks, Mohammed said the visit was part of the council’s initiative to promote collaboration and synergy with key institutions through effective interaction and advocacy.

He also congratulated the NDIC for its contribution to the stability of the Nigerian banking system.