liberalized banking sector, following the direction of former central bank governor Ola Vincent. Its objective is to protect the banking system from instability occasioned by loss of depositors’ confidence, as it operates as a parastatal under the Ministry of Finance.
Recently, the managing director and chief executive of the Corporation, Bello Hassan, revealed that from June 1989 to June 2021, NDIC has paid a total of ₦11.76 billion (US$28.44 million) in insured sum to over 535,000 depositors in the West African nation. Another ₦101.666 billion (US$245.9 million) has also been paid by the agency since its formation, Hassan said. These figures were shared by NDIC chief executive, who was represented by the Corporation’s Senior Manager for Benin Zone Udofor Ukpom, at the Edo International Trade Fair in Benin City.
According to Hassan, as a statutory agency of government with four broad mandates, the NDIC has been protecting Nigerian depositors by providing with an orderly means of reimbursement in the event of bank failures. The four mandates include deposit guarantee, distress resolution, bank supervision and bank liquidation.
“From inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability and has paid cumulative amount of ₦11.76 billion as insured sums to 535, 815 depositors of closed banks while a total of ₦101.666 billion had been paid as uninsured sum as at 30 June, 2021. In addition, a total of N6.159 billion had been paid as liquidation dividend to 1,955 creditors and shareholders of closed banks,” the NDIC CEO noted.
He further noted that so far, the Deposit Insurance Corporation has declared full payment for both insured and uninsured sums of depositors of 18 banks that have been in liquidation in Nigeria. “Likewise, NDIC has continued to strive for a sound, safe and stable financial system which is pivotal for sustainable economic growth and in that regard, has responded to innovations in the financial system by extending deposit insurance cover to MFBS, PMBs, NIBs and MMOs and also to the recently licensed Payment service banks (PSBs) in order to engender confidence in the financial system,” he added.
