NDIC ready to pay depositors of closed banks – MD

The Nigeria Deposit Insurance Corporation (NDIC) has said that it has realized enough funds to pay depositors and creditors of closed microfinance, primary mortgage, and deposit money banks and urged them to come forward for verification and payment.

The Managing Director/ Chief Executive of NDIC, Mr. Bello Hassan, spoke during the NDIC Special Day at the ongoing 44th Kaduna International Trade Fair with the theme “Promoting Value Addition for Sustainable Growth and Development”.

While assuring members of the public that their money is safe in the banks, the Managing Director who was represented by the NDIC’s Manager of Communications and Public Affairs Unit, Tanko Ibrahim Yahaya, said that the deposit money banks, primary mortgage banks, the payment service banks and mobile money operators were all insured up to N500,000 per depositors per bank, while those of microfinance banks were insured up to N200, 000 per depositor per bank. 

“I would like to take this opportunity to congratulate the executives and members of the Kaduna Chamber of Commerce and Industry on yet another success in their tireless efforts to aid the government in encouraging trade and investment throughout the entire country’s economy. The fair speaks volumes about how your programs and vision match with the government’s priorities in this regard,’ he said.

“Also for us in NDIC, it is instructive to note the strong nexus between our mandate and the theme of this year’s fair. By discharging our public policy objectives of protecting depositors in the event of bank failures and offering a measure of safety for the banking system generally, we create an enabling environment for the financial system to support the SME sub-sector of our economy and promote sustainable growth and development through an efficient payment system.”

“Suffice it to say that the Corporation was established in 1989 as a critical component of the nation’s Financial system safety net. The four broad mandates of the Corporation are Deposit Guarantee, Banking Supervision, Failure Resolution, and Bank Liquidation,” he said.

According to him, ” in order to consistently educate depositors, stakeholders, and the general public about the presence of the Deposit Insurance Scheme (DIS), its advantages, and its drawbacks, the Corporation has participated in the Kaduna International Trade Fair over the years. This is significant to us as it will enhance public confidence in the financial system. If people are aware that their deposits are safe and that in the unusual event of a bank failure, a government agency will protect depositors, especially small savers.”

‘The Corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing deposits in banks; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in efficient manner in line with extant laws and regulations; by resolving issues of distressed banks to reduce instances of failure; and ensuring orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.”

“It is worthy to note that the Corporation has been effectively and efficiently discharging its mandates from inception till date, living up to its public policy objectives and contributing to financial system stability. For instance, in the aspect of Deposit Guarantee, we are happy to state that NDIC has been highly responsive in providing coverage to all eligible deposits and products as they evolve in our banking system.”

“Apart from depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MBs), the Corporation has also been responsive by extending deposit insurance coverage to depositors of Non-Interest Banks (NIBs), Payment Service Banks (PSBs) and subscribers of Mobile Money Operators (MMOs).”

“Depositors of DMBs, PMBs, PSBs, and subscribers of MMOs are insured up to a maximum limit of N500,000.00 per depositor per bank, and those of MBs are guaranteed up to a maximum limit of N200,000.00 per depositor per bank. The Corporation has also recorded similar giant strides in its other mandates which time will not permit us to delve into here.”

“Recently, through newspaper adverts, radio and television announcements, and notices on our website and social media handles, the Corporation repeated its call to depositors of twenty closed banks in which it has declared full (i.e. 100%) liquidation dividends to come forward for verification and payment of their deposits that are in excess of the guaranteed sums.”

“The implication of this is that, through our dogged liquidation activities, the Corporation has realized enough funds to fully pay all depositors of the closed banks. Similar Notices were also sent to Creditors of seven DMBs in-liquidation as well as depositors and ex-staff of two MBs and a PMB, details of which are still available on our website and social media handles,” he said.

The NDIC  called on depositors, creditors and shareholders of the listed closed banks to avail themselves of the verification platforms provided by the Corporation to claim their funds,adding that it would leave no stone unturned in its commitment to the effective discharge of its mandate. 

He said the Corporation has won the court case versus  shareholders of the defunct Fortune Bank International, hence, all depositors of the defunct Bank can now visit their offices across the country to file in their claims for the purpose of reimbursement of their trapped deposits in the bank.

-vanguard news