All Depositors of 18 Failed Banks have Been Paid, Says NDIC Boss

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By John Shiklam

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that all depositors of 18 closed Deposit Money Banks (both insured and uninsured), whose funds were trapped in such banks have been fully paid.

The Managing Director of the NDIC, Alhaji Umar Ibrahim, disclosed this on Thursday at the on-going 41st Kaduna International Trade Fair, Kaduna, organised by the Kaduna Chambers of Commerce, Industries, Mines and Agriculture (KADCCIMA).

Ibrahim, who was represented at the occasion by the Director, Communication and Public Affairs Department of the NDIC, Dr. Sunday Oluyemi, also said the corporation had taken steps to address the implications and risk of technological innovation in the nation’s financial services industry.

According to him, creditors and shareholders of the closed banks had been paid liquidation dividends to the tune of N4.987 billion as at December 31, 2019.

Ibrahim said further that the corporation has developed a framework for the extension of Deposit Insurance cover to the tune of N500,000 per depositor of Payment Service Banks (PSBs).

He said the PSBs recently granted licence in principle by the Central Bank of Nigeria (CBN) are to provide banking and financial services to individual and small business entrepreneurs.

The NDIC managing director said the corporation would protect the banks once it commenced commercial operations, noting that the corporation was committed to the enhancement of public confidence in the nation’s banking sector.

He explained that the corporation had taken steps to address the implications and risk of technological innovation in the nation’s financial services industry.

He said in January 2020, the NDIC established a new “fintect and innovation unit,” working in collaboration with innovation in financial and non-financial sector of the economy that would be technologically driven to protect depositors.

He assured his audience that the corporation would not rest on its oars in protecting depositors and urged traders and businessmen to always save their money in licensed banks where their savings are protected by the NDIC.

“To date, the NDIC has fully paid all the depositors of 18 closed Deposit Money Banks all their monies (both insured and uninsured) that were trapped in such banks. Creditors and shareholders of the closed banks had also been paid liquidation dividends to the tune of N4.987 billion as at 31st December, 2019.

“In the same vein, I am delighted to disclose that the corporation has developed the framework for the extension of Deposit Insurance cover to the tune of N500,000 per depositor for depositors of Payment Service Banks (PSBs).

“The PSBs recently granted licence in principle by the Central Bank of Nigeria (CBN) are to provide basic banking and financial services to individuals and small businesses.

“The prompt response by the corporation ensures that depositors of the PSBs will be protected by the NDIC once the banks commence commercial operations. This development underscores the operational readiness of the NDIC and its commitment to the enhancement of public confidence in the nation’s banking sector,” he said.

The NDIC boss noted that the corporation, like other critical stakeholders in the financial system, is fully aware of its obligations towards the fulfilment of the federal government’s elaborate economic policies.

“We are especially aware that for agriculture to recapture its previous position as the top revenue earner for the nation, our farmers at all levels will require safe and secured access to financial services, especially at the grassroots levels.

“As a critical pillar in the Nigerian financial system, NDIC will continue to promote the much needed interface between Industry and agriculture by working to ensure a safe, sound and stable banking sector that offers strong support to the agricultural sector,” he said.