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NDIC Ensures Swift Payouts to Depositors Amid Bank License Revocations.

Nigeria Deposit Insurance Corporation (NDIC) Prioritizes Financial Stability and Deposit Security, Collaborates with Bureau of Public Procurement (BPP).

The Nigeria Deposit Insurance Corporation (NDIC) has initiated the disbursement of funds to depositors impacted by the recent license revocation by the Central Bank of Nigeria (CBN). The affected institutions comprise 178 Microfinance Banks and four Primary Mortgage Banks, among which 62 had already ceased operations, 74 were declared insolvent, 12 were temporarily distressed, and six were voluntarily liquidated.

 

Speaking at a two-day capacity-building workshop held at Four Points by Sheraton hotel, Ikot Ekpene, NDIC’s Managing Director, Alh. Bello Hassan, emphasized the corporation’s commitment to upholding standards and preventing public panic regarding the safety of bank deposits. He reiterated NDIC’s role in bolstering the financial system to support the nation’s economic progress and contribute to financial system stability.

 

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Hassan, represented by Alh Mustapha Ibrahim, the Executive Director of Operations, stated, “The Nigeria Deposit Insurance Corporation plays a vital role in the country’s banking system as a Depositor Insurance, alongside prudential Regulation & Supervision, Failure Resolution, Deposit Insurance, and Lender of Last Resort function of the Central Bank of Nigeria. These components collectively safeguard the banking system’s integrity and foster financial stability.”

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Addressing the recent revocation of licenses from 178 Microfinance Banks and four Primary Mortgage Banks, Hassan assured depositors of swift payment of their insured sums. He detailed NDIC’s liquidation process, encompassing payment of the guaranteed amount, debt recovery, sale of assets, and distribution of liquidation dividends on uninsured sums.

 

Hassan commended the collaboration with the [Bureau of Public Procurement (BPP)] and the training provided for senior management staff, highlighting the positive impact on waste reduction, transparency, and competition. He expressed optimism that these efforts would elevate NDIC’s status as a leading Deposit Insurer globally.

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Alh. Mamman Ahmadu, Director-General of [BPP], stressed the importance of proper procurement planning and record-keeping to prevent potential wrongdoing. He assured continued cooperation between BPP and NDIC to ensure efficient procurement processes.

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