NDIC Pays Over N112bn To Depositors Of Banks In-Liquidation

The Nigeria Deposit Insurance Corporation, NDIC, has cumulatively paid N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in-liquidation as at June, 2022. Managing Director of NDIC, Bello Hassan made this known at the opening ceremony of the 19th edition of the workshop for Business Editors and Finance Correspondents Association of Nigeria, FICAN, in Port Harcourt on Monday.
Hassan said NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in-liquidation.
He said the liquidation activities, as at June 30, 2022, covered a total of 467 insured financial institutions in-liquidation, comprising of 49 Deposit Money Banks, 367 Micro Finance Banks, and 51 Primary Mortgage Banks.
According to him NDIC provided deposit insurance coverage to a total of 981 insured financial institutions. “The breakdown includes: 33 DMBs made up of 24 Commercial Banks, Six Merchant Banks and Three (Non-Interest Banks (NIBs). Others are Two Non-Interest Windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); Three Payment Service Banks (PSBs) and 29 Mobile Money Operators”,he said.
Also NDIC MD said 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.
Speaking at the event Hassan enumerated some bold steps being taken by the Corporation to invigorate its processes and procedures, towards a more effective discharge of its depositor protection mandate and some landmark achievements which include; scaling-up the deposit insurance framework; 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.
He said NDIC have embarked on series of strategic initiatives to achieve desired vision, faster and orderly resolution of liquidated banks.
He said. “ 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 platform would not only ensure availability of quality, timely and complete data to the NDIC, but would eliminate delays often experienced in reimbursing depositors following revocation of institutions’ licenses by the CBN.
“The final phase of the implementation of the 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. In the area of consumer protection, 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”.
Speaking on the synergy between NDIC and media, the MD said the workshop has evolved into the flagship capacity building and engagement platform by the Corporation and it has further been expanded to accommodate the members of the civil society groups and the Association of Corporate Affairs Managers of Banks (ACAMB).
“This event has over the years, promoted better understanding of the Corporation’s roles in achieving financial system stability. It has also strengthened and broadened the media’s ability to interrogate and interpret topical issues in the financial services sector in general. In addition, 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”, he said.