Nigeria Deposit Insurance Corporation (NDIC) has assured depositors with banks licensed by the Central Bank of Nigeria (CBN) of the safety of their savings ,noting that CBN has stepped up regulatory efforts to ensure the resilience and stability of the Nigerian banking sector. .
Managing Director/Chief Executive of NDIC, Bell Hassan gave the assurance on Friday, in his speech during the NDIC special day at the ongoing 35th Enugu International Trade Fair holding in Enugu
Represented by the Zonal Controller Pamela Roberts, Hassan said ,” under this proposal, commercial banks would be required to maintain minimum capital levels of N500 billion, N200 billion an N50 billion for International, national, and regional institutions, as well as N5 billion for merchant banks while national and regional non-interest banks are required to maintain N20 land N10 billion respectively.
According to him, “this strategic capitalization initiative is in line with President Bola Ahmed Tinubu administration urge to grow Nigeria’s economy to the ranks of $1 Trillion bas economies. This will not only strengthen the banking system but would also enhance the sector’s ability to withstand financial shocks
Pix- Zonal Controller Pamela Roberts
“The role of NDIC in the protection of depositors’ fund with the banks and other financial institutions remains a great confidence back up for Nigerian teaming depositors who had suffered dearly in the past prior to the establishment of NDIC all their deposits whenever tsunami occurred in the banking sector with banks closing their door permanently against depositors.
“As ever the NDIC will continue to collaborate with the CBN in ensuring a seamless transition while safeguarding depositors’ interest, he said .
Hassan further said the NDIC has been unwavering in its commitment to promptly reimburse depositors of bank failures
“Since the Central Bank Nigeria (CBN) revoked the licenses of 179 Microfinance Banks and 4 Prima Mortgage Banks in 2023, the NDIC has continued to efficiently disbursed insured sums to verified depositors of these closed institutions Notable depositors who have undergone verification and have provided alternative account details have received their payments seamlessly within a rec period of 5 working days.
“While It’s worth noting that depositors with amount exceeding the insured limit will receive liquidation dividends once debts recovered and assets of the closed banks are Disposed. Moreover, the NDIC strongly encourages depositors of the affected banks to come forward with their Bank Verification Number (BVN), proof of account ownership por identification, and/or alternative,” he said
“According to him, “the NDIC has been unwavering in its commitment to promptly reimburse depositors affected by bank failures Since the Central Bank Nigeria (CBN) revoked the licenses of 179 Microfinance Banks and 4 Prima Mortgage Banks in 2023, the NDIC has continued to efficiently disbursed insured sums to verified depositors of these closed institutions Notable depositors who have undergone verification and have provided alternative account details have received their payments seamlessly within a rec period of 5 working days.
” The Deposit Insurance Scheme (DIS) as implemented by the NDIC, is designed as a “risk minimizer” with core mandates of Deposit Guarantee, Bank Supervision, Distress Resolution, and Bank Liquidation
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“The NDIC instils public confidence by way of assurances to depositors that their funds will remain secure and accessible in the unfortunate event of a bank failure. This provides incentive for the unbanked to save their money in banks licensed by the Central Bank of Nigeria which are automatically being insured by the NDIC., ” he said.
Hassan commended the NDIC for the role they are playing towards building confidence amongst bank depositors.
Earlier in his welcome address, the President of ECCIMA , Sir Odeiga Jideonwo, urged the CBN to make the work of NDIC much easier by ensuring that the chances of bank failures is reduced to the barest minimum and guarded against especially to save depositors the trouble of going through the hallowing experience, particularly in the period of excruciating hardship being experienced by many Nigerians.
pix- Roberts
He said effort should also be made to ensure that the effect of the new CBN policies does not create unnecessary panic and pressure on depositors and the entire Nigerian citizens.
He commended CBN and NDIC, as key players in the financial sector, for their effort towards stability and near tranquility in the banking/financial sector through their regulatory frameworks, despite the current challenges being experienced in Nigeria economic cycle which we are sure will soon be a thing of the pa
NDIC was established by the Fed Government under the NDIC Decree 22 of 1988, which was repealed NDIC Act No. 16 of 2006 and recently amended as the NDIC Act No. 3 2023. And the primary public policy objectives of the Deposit Insurance System (DIS) in Nigeria is to protect the interest of depositors by providing mechanism for reimbursement in the event of imminent or actual failures.
Author: Maureen Ikpeama