The Managing Director and Chief Executive Officer CEO of the Nigeria Deposit Insurance Corporation NDIC Mr Hassan Bello has disclosed that as at 22nd September 2023, the Corporation had paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed MFBs/MPBs.
He stated this during the NDIC Special Day at the ongoing 18th Abuja International Trade Fair 2023.
The NDIC boss who reiterated the key mandate of the Corporation which is to provide deposit guarantee to depositors of insured financial institutions, bank supervision, distress resolution, and bank liquidation explained that over the years, the NDIC has grown stronger in fulfilling these responsibilities and have significantly enhanced public policy objectives of establishing a robust deposit insurance scheme in Nigeria.
According to him, “this year’s theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” is especially relevant given the determination of government’s efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth.”
This falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.
Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!”.
This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed. Furthermore, the Corporation’s activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system.
This acts as an incentive for the unbanked to access financial services of licensed banks.
Recently, following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.
It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.
Currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks: They are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.
We at the NDIC hold the strong view that “Knowledge is Power”, and we believe that an informed depositor can make better financial decisions. I urge the public to be cautious of illegal fund managers, often referred to as “Wonder Banks” or “Ponzi Schemes.”
These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many. It’s important to note that these “wonder banks” are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme. Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country.
Distinguished Ladies and gentlemen, I encourage you all to visit the NDIC pavilion where our experienced staff will be on ground to address enquiries and also clarify issues about the operations of the deposit insurance. A helpdesk has also been set up at the stand where depositors of failed banks can find out where and how to access their deposits as well as process their claims.
In conclusion, I would like to express my sincere gratitude to the President and other Executive Members of the Abuja Chamber of Commerce, our royal fathers, and other distinguished guests who took time out of their busy schedules to be here today. I wish you all a safe return to your respective destinations.
