How NDIC Settles 535,815 Closed Banks’ Depositors N11.76bn

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The Nigeria Deposit Insurance Corporation has said that 467 banks have either been liquidated or undergoing the process of complete liquidation by the corporation. The Chairman, NDIC board, Mrs Ronke Sokefun, said this on Thursday during the 2021 NDIC retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.

“Besides deposit protection, prompt resolution of bank failure in Nigeria by the NDIC in its over 32 years of its existence has succeeded in steering the banking sector off systemic failure and collapse of public confidence, thus safeguarding the role of financial safety net,” she said.

She said the bank resolution options applied so far by the NDIC included financial assistance, technical assistance, hold action, assisted mergers and acquisition, purchase and assumptions, as well as the application of the bridge bank mechanisms. Sokefun said, “It is only when all these options could not rescue a bank that it is allowed to go into liquidation

Meanwhile, the Chairman, House of Representatives Committee on Insurance and Actuarial Matters, Darlington Nwokocha, said the committee’s is ready with the amendment to the Nigeria Deposit Insurance Corporation (NDIC) Bill in order to maintain a sustainable banking sector and enhance deposit insurance system in Nigeria.

the house committee that eliberate on, “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance,” noted that the NDIC bill, which is almost getting to the third reading would highly synergies with what NDIC is doing to drive the economy to a great height.

He said: “The theme, strengthening Nigeria’s financial safety net: the role of deposit insurance is very key at this moment because when we are talking about strengthening, there are too many elements, indices and factors that must come together to guarantee such strengthening. And one of the machinery to drive that process would come from the legislature and that is why we are calling and saying that NDIC act which we have presently, we are ready to strengthen the NDIC more by amending that act.”.

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