The Nigeria Deposit Insurance Commission (NDIC) said it has cumulatively paid N11.83 billion to over 443,949 insured depositors and over N101.337 billion to uninsured depositors of all categories of banks in liquidation.
Managing Director/ Chief Executive Officer of NDIC, Mr. Bello Hassan stated this in Port Harcourt at the ongoing 19th edition of the workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN).
He said as at June 30, 2022, the Corporation provided deposit insurance coverage to
a total of 981 insured financial institutions.
According to him, the breakdown includes
thirty-three Deposit Money Banks (DMBs) made up of 24 commercial banks, 6 Merchant Banks and 3 Non-Interest Banks (NIBs) plus two Non-Interest Windows; 882 Microfinance Banks (MfBs); 34
Primary Mortgage Banks (PMBs); 3 Payment Service Banks
(PSBs) and 29 Mobile Money Operators.
He maintained that the NDIC’s bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in
liquidation.
“The liquidation activities, as at June 30, 2022, covered a total
of 467 insured financial institutions in-liquidation, comprising of 49 DMBs,
367 MFBs, and 51 PMBs.
“It is most profound for me to say that,out of the 49 DMBs in-liquidation,
the Corporation in September, 2022 declared 100 per cent liquidation
dividend in 20 of those institutions, meaning that the Corporation has
realized enough funds from their assets to fully pay all depositors of the
listed banks.
“It is gratifying to note that this workshop has evolved into the flagship capacity building and engagement platform by the Corporation, not only with the media, but with the members of the civil society groups and the Association of Corporate Affairs Managers of Banks (ACAMB),” he said.
The NDIC boss further noted that the event has over the years, promoted better understanding of the
Corporation’s roles in achieving financial system stability.
Speaking further, Mr Hassan maintained that it has also strengthened and broadened the media’s ability to interrogate and
interpret topical issues in the financial services sector in general.
He said the Corporation has been able to promote better understanding
of its mandates and activities among members of the civil society organisations, thereby fostering collaboration in the area of
enlightenment of the public on the benefits of the Deposit Insurance
System (DIS).
“With the coming onboard of the Corporate Affairs Managers of Banks (ACAMB), I am optimistic,that the same high level of partnership,will be fostered towards educating bank depositors about the importance of the DIS through your consistence in the seminar.
“The fact that the global banking landscape has
continued to be defined and challenged by technological disruptions, innovations and novelties cannot be overemphasized.
“This reality has not only put a demand on regulators and supervisors in the sector across the world to enhance surveillance, but it has also called for stronger collaborations,in order to deliver services that are laced with constantly improved values to the banking public and the society at large,” he added.
Hassan however, underscored the determination of the management of the Corporation to work harmoniously with all stakeholders, towards enhancing the effective discharge of our mandate.
He also outlined the vision and policy direction of the Corporation under his stewardship to include “our determination to scale up the deposit
insurance framework; the provision of timely support to insured institutions as and when required; to ensure faster and orderly resolutions of liquidated insured institutions; and to continue to assist the CBN in promoting the stability of the banking system.
” Over the time, we have embarked on series of strategic initiatives to achieve our desired vision.
“In the area of scaling-up the deposit insurance framework and ensuring
faster and orderly resolutions of liquidated insured institutions, in May this year, with the active participation of the relevant stakeholders, we had
developed and deployed the Single Customer View (SCV) platform for
the Microfinance and Primary Mortgage Banks in order to strengthen our
processes and procedure for data collection.
The NDIC boss further maintained that the final phase of the implementation of SCV for Deposit Money
Banks (DMBs) will be achieved through the incorporation of the SCV
template as part of the on-going Integrated Regulatory Solution (IRS)
jointly being developed with the CBN.
Consumer Protection
In the area of consumer protection, the NDIC boss said the Corporation has strengthened its
complaints resolution platforms,which include the Toll-Free Help Desk,
social media handles and Complaints Desks in the Bank Examination,
Special Insured Institutions and Claims Resolutions Departments, as well
as our Zonal Offices,to receive and process complaints from depositors.
Deposit Guarantee
“It is most profound for me to say that,out of the 49 DMBs in-liquidation,
the Corporation in September, 2022 declared 100 per cent liquidation
dividend in 20 of those institutions, meaning that the Corporation has
realized enough funds from their assets to fully pay all depositors of the
listed banks,” he said.
