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From Noah Ebije, Kaduna
The Nigeria Deposit Insurance Corporation (NDIC) has reassured customers of failed and liquidated banks and other financial institutions in the country of the safety and recovery of their respective deposits from such banks.
In his address at the Special Day at the ongoing 43rd Kaduna International Trade Fair on Thursday, the Managing Director of NDIC, Mr Bello Hassan said the Corporation began operations in 1989 with four broad mandates, among which is Deposit Guarantee as well as protecting depositors by providing an orderly means of resolution and reimbursement in the event of bank failures.
The NDIC boss, who represented by Bashir Nuhu of the Corporate Affairs of the Corporation, said the theme of the fair, “Consolidating Interface between Industry and Agriculture for Nigeria’s Sustainability Development”, aligned with the Federal Government’s drive of developing the non-oil sector most especially Agriculture to create employment using the Agricultural value chain to empower citizens economically.
‘The nexus in this for the NDIC is that when the Nation diversifies through the Agricultural sector and associated value chain, economic growth is stimulated and this invariably contributes to financial inclusion. It is imperative for me to say at this juncture that the NDIC has remained a consistent participant in the annual Kaduna International Trade Fair to sensitise the banking and general public about the existence of the deposit insurance system and the benefits of protection it offers them.
‘This is fundamental to us because the populace confidence in the financial system can only be guaranteed when they are aware that their deposits are protected and that in the unlikely event of failure, there is an agency of government that would have their back.
‘NDIC was established in 1988 and began operations in 1989 with four broad mandates of Deposit Guarantee, Bank Supervision, Distress Resolution and Bank Liquidation. The primary public policy objectives of the Corporations is to contribute to financial system stability by making incidences of bank runs less likely, while also protecting depositors by providing an orderly means of resolution and reimbursement in the event of bank failures.
‘Suffice it to state that from inception till date, NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability. The corporation provides deposit insurance cover to Microfinance Banks (MFBs), Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs), subscribers of Mobile Money Operators (MMOs) and also to the recently licensed Payment Service Banks (PSBs).
‘Presently each depositor of DMBs, NIBs, PMBs and subscribers of MMOs are insured up to the maximum limit of N500,000.00 per bank in the event of failure; while the maximum insured coverage for depositors of MFBs is N200,000.00 per bank.
‘However, it is most important for me at this occasion to reiterate that depositors who have funds in excess of the insured limits are paid dividends from the proceeds of assets sales and debt recovery in respect of the failed banks.
‘This emphasis becomes pertinent as depositors often ask what becomes of their funds in excess of the NDIC guaranteed sums. The guaranteed sums are first and immediate payment while liquidation dividends are second and prorated payments attached to the bank liquidation mandate of the Corporation.
‘Instructively, this is another area where NDIC has performed creditably well even in the face of daunting challenges. It may interest you to note that from its dogged liquidation activities, the Corporation has declared 100 per cent liquidation dividends to depositors of 22 DMBs in-liquidation. What this means is that NDIC has realised enough to pay all depositors of the concerned 23 DMBs 100 per cent of their money trapped in those banks.
‘As a result, the Corporation has since moved on to commence payment of liquidation dividends to creditors and shareholders of some of the banks, indicating that their depositors can access their full payment whenever they file their claims. It is on this note that I like to call on depositors of banks in liquidation to avail themselves of the Corporation’s physical and online platforms for claiming their trapped deposits.
‘The online claim verification platform has been incorporated to facilitate the processing of claims from the comfort of depositors’ houses and offices. This is also available to creditors and shareholders of closed banks,’ Mr Hassan said.
