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Published On: Fri, Sep 26th, 2014

NDIC to introduce deposit insurance for individuals – MD/CEO

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NDIC bankBy Aminu Imam

The Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Umar Ibrahim, yesterday revealed that the NDIC would soon introduce deposit insurance scheme for individuals, apart from Deposit Money Bank depositors.

The MD/CEO stated this during the 25th Anniversary press conference held at the NDIC head office in Abuja.

Ibrahim, in his address, paid tribute to the founding fathers of the Corporation, saying, “As a result of the wonderful work they did the NDIC and indeed the deposit insurance system in Nigeria becomes not only the leader in Africa but also the envy of other countries.

According to the Corporation’s helmsman, “The NDIC was established as a risk-minimiser, with the mandate of deposit guarantee, supervision, and distress resolution and bank liquidation.

It is worthy of note that, under the guidance and leadership of its successive Board of Directors and executive management as well as the services rendered by its selfless and dedicated past and present staff, the corporation had in the last 25 years achieved reasonable degree of success in the discharge of its mandate and satisfaction of the expectations of its stake holders”, he stated.

With regards to the mandate of the Corporation in the area of failure resolution, the NDIC boss said the corporation has continued to ensure that failing and failed institutions are resolved in a timely and cost effective manner.

“On liquidation activities, there is no doubt that the Corporation had made a lot of achievements in ensuring that depositors of liquidated banks suffer as little loss or pain as possible.

Following the revocation of the operating licences of insured DMBs in 1994, 1995,1998,2000,2000 and 2006, as well as the 103 MFBs in 2010,83 in 2013 and 26 PMBs, the NDIC ensured the prompt payment of insured sums and dividends to uninsured depositors and other eligible claimants.

“A cumulative amount of N6.825 billion was paid to 528,277 insured depositors of the 48 DMBs, the cumulative amount of N2.756 billion had been paid to 80,059 verified depositors as at 31st August, 2014”, he stated.

“Following the approval of the Board in 2010 for the appointment of Debt Recovery Agents to recover debts owed to DMBs in-liquidation, 91 accounts were assigned to 60 Debt Recovery Agents, while 81 Micro-Finance Banks were assigned to 46 Debt Recovery Agents.

“Also, as part of efforts to realize the assets of failed financial institutions under liquidation, the sale of some delinquent bank loans to AMCON in order to clean up the balance sheets and settle depositors of the affected failed institutions was approved and undertaken.

Ibrahim said payment of information dividends to the uninsured depositors of the closed DMBs was undertaken at different time in the last 25 years of NDICs engagement as a liquidator of banks in Nigeria. “Accordingly, the cumulative sum of N93.646 billion was paid as liquidation dividend to 250,497 depositors as at August 31, 2014”, he stated.

 

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