The Nigeria Deposit Insurance Corporation (NDIC) has as of June 2022, cumulatively paid N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks in liquidation.
Bello Hassan, managing director/chief executive, of NDIC, disclosed this at the opening session of the 19th edition of the NDIC workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Port Harcourt, Rivers State.
The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation. The liquidation activities, as of June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 Deposit Money Banks (DMBs), 367 Microfinance Banks (MFBs), and 51 Primary Mortgage Banks (PMBs).
Hassan said out of the 49 DMBs in liquidation, the Corporation in September 2022 declared 100 per cent liquidation
dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.
As of June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions.
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The breakdown includes 33 DMBs made up of 24, commercial banks, six Merchant Banks and three Non-Interest Banks (NIBs) plus two Non-Interest windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); three Payment Service Banks (PSBs) and 29 Mobile Money Operators.
In the area of scaling up the deposit insurance framework and ensuring faster and orderly resolutions of liquidated insured institutions, he said the Corporation in May this year, developed and deployed the Single Customer View (SCV) platform for the Microfinance and Primary Mortgage Banks in order to strengthen the processes and procedures for data collection.
The platform, he said would not only ensure the availability of quality, timely and complete data to the NDIC but would eliminate delays often experienced in reimbursing depositors following the revocation of institutions’ licenses by the CBN.
According to him, the final phase of the implementation of the SCV for Deposit Money Banks will be achieved through the incorporation of the SCV template as part of the ongoing Integrated Regulatory Solution (IRS) jointly being developed with the CBN.
In the area of consumer protection, the Corporation has strengthened its complaints resolution platforms, which include the Toll-Free Help Desk, social media handles and complaints desks in the bank examination, special insured institutions and claims resolutions departments, as well as the Corporation’s zonal offices, to receive and process complaints from depositors.
Furthermore, Hassan said, “I underscored the determination of the management of the Corporation, to work harmoniously with all stakeholders, towards enhancing the effective discharge of our mandate. I also outlined the vision and policy direction of the Corporation under my humble stewardship to include our determination to scale up the deposit insurance framework; the provision of timely support to insured institutions as and when required; to ensure faster and orderly resolutions of liquidated insured institutions; to continue to assist the CBN in promoting the stability of the banking system. Over time, we have embarked on a series of strategic initiatives to achieve our desired vision.”
He called for stronger collaborations, in order to deliver services that are laced with constantly improved values to the banking public and society at large.
“It is in line with the foregoing, that the Corporation has carefully chosen the theme of this year’s workshop as: ‘Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System’, he said.
