NDIC pays depositors of 18 closed Banks

From Femi Oyelola, Kaduna

The Nigeria Deposit Insurance Corporation (NDIC) said to date,it has fully paid all the depositors of 18 closed Deposit Money Banks (both insured and uninsured) that were trapped in such banks.
The Managing Director/ Chief Executive Officer of the Corporation, Umaru Ibrahim disclosed this in speech at the occasion of NDIC’s special Day at the on going 41st Kaduna International Trade fair.
He added that Creditors and shareholders of the closed banks had also been paid liquidation dividends to the tune of N4.987 billion as at 31st December, 2019.
The MD further disclosed that the Corporation has developed the Framework for the extension of Deposit Insurance cover to the tune of N500,000 per depositor for depositors of Payment Service Banks (PSBS).
“The PSBS, recently granted license in principle by the Central Bank of Nigeria (CBN), are to provide basic banking and financial services to individuals and small businesses.
“The prompt response by the Corporation ensures that depositors of the PSBS will be protected by the NDIC once the banks commence commercial operations.
“This development underscores the operational readiness of the NDIC and its commitment to the enhancement of public confidence in the nation’s banking system.” He said Speaking on the theme of this year trade fair: “Consolidating Interface between Industry and Agriculture for Nigeria’s Sustainable Development”, he said Agriculture was the mainstay of the Nigerian economy, and was identified in several National Development Plans as a catalyst and engine of growth for the nation’s economic development.
He said the reawakened desire to Spur agricultural sector performance has continued to be a cardinal objective of the current administration, and has continued to leverage on active support and collaboration of critical stakeholders, like the Kaduna Chamber of Commerce, Industries, Mines & Agriculture (KADCCIMA)
“ The NDIC, like the other critical stakeholders in the financial system is fully aware of its obligations towards the fulfilment of the Federal government’s elaborate economic policies.
“We are especially aware that for agriculture to recapture its previous position as the top revenue earner for the nation, our famers at all levels will require safe and secured access to financial services, especially at the grassroots levels.
“ As a critical pillar in the Nigerian Financial System, NDIC will continue to promote the much needed interface between Industry and Agriculture by working to ensure a safe, sound and stable banking sector that
offers strong support to the agricultural sector.
Against this backdrop, the NDIC and CBN have been taking steps to strengthen the operations of the Microfinance Banks (MFBS) with a view to making them relevant to the needs of farmers.

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