Prometeia, in conjunction with their Nigerian Partner, JKS, organised a training programme on Financial Derivatives for staff of Nigeria Deposit Insurance Corporation (NDIC) between 19th and 30th January, 2015. The training took place in Lagos. The course was designed to build the capacity of the NDIC Examiners in derivative instruments and related markets within the context of the growing complexity of the Nigerian financial sector which, amongst others, is characterised by derivative instruments products. The acquisition of skills by NDIC Examiners in financial derivatives is considered crucial to the effective discharge of the Corporation’s responsibilities as a bank supervisor.
The training programme comprised lectures, case studies and practical exercises on topics like: Forwards and Futures, Interest Rate Swap, Options, Binomial Model, Black and Scholes Model, Commodities and Forex Options, Defaultable Bonds, Credit Derivatives and Interest Rate Options.
In all, 30 staff from Bank Examination Department (BED) of the Corporation benefited from the programme, which was facilitated by two experienced trainers: Riccardo Tedeschi and Gianfranco Vento. Another member of the faculty was Mr. Samuel Oni, Partner, JKS Nigeria and former Director, Banking Supervision Department, CBN. Mr. Oni was on hand to provide the much needed local background to some of the lectures.
It is noteworthy that a weekly test to gauge participants’ understanding of the topics was conducted. The results of the tests showed that most of the participants understood the issues discussed during the training.
The faculty was also suitably qualified as the lecturers displayed a mastery of the topics in addition to the hands-on experiences they brought to bear on their deliveries. That was confirmed by the top scores assigned by participants in evaluating the programme in terms of course content, quality of materials, teaching staff and interaction in class.
“As bank Examiners, the course was specifically rewarding in the areas of exposing participants to the various ways in which forwards and futures can be used as hedging instruments, the conditions which would make a bank engage in interest rate swaps and the mechanism for determining whether the banks had adopted the best hedging option in each circumstance. The case studies were revealing and ensured that participants were fully engaged through the presentation of case study reports”
H. E. Alakwe (NDIC Bank Examiner)
“The course was robust in coverage with interactive sessions which allowed for knowledge sharing. The course content was rich and the facilitators demonstrated a good understanding of the subject matter and employed a mode of delivery which proved effective in carrying the class along”
S. A. Saddiq (NDIC Bank Examiner)
“As a member of the Team that anchored the training program for the NDIC examiners, I found the course content and coverage to be sufficiently adequate, relevant and useful in assisting Bank Supervisors to properly access the level of risks faced by banks on their financial derivatives Portfolio and how the risks can be minimized through appropriate strategy and well-structured hedging instruments. The course delivery and methodology adopted by the Facilitators with the introduction of simulation exercises in the classroom practically simplified the course despite the technicality and complexity of the financial models used in teaching theclass.”
Samuel ONI (Former head of Nigerian Banking Supervision Department and currently member of the board of United Bank of Africa)