NDIC Declares 100% Dividend To Depositors of Over 20 Banks In Liquidation

The Nigeria Deposit Insurance Corporation (NDIC) said the invigorated activities of its liquidation processes has greatly increased debt recovery rate of the corporation. Speaking at the opening ceremony of the 2023 NDIC Editors’ forum on Saturday in Lagos, with the theme “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future”.  the Managing Director / Chief Executive Officer of the corporation, Mr Bello Hassan explained that “we have invigorated our liquidation activities, and greatly increased debt recovery rate leading to the declaration of 100 per cent liquidation dividends to uninsured depositors of over 20 deposit money banks in-liquidation as well as payments to other stakeholders such as creditors, ex-staff and shareholders”;

He noted that in complementing the consumer protection efforts of the Central Bank of Nigeria (CBN), the corporation has enhanced its public awareness on deposit insurance and financial literacy to reduce the rate at which small depositors are being defrauded, thereby enhancing confidence in the banking system.

NDIC boss pointed out that since its inception in 2011, the Annual NDIC Editors Forum has played a pivotal role in facilitating mutual understanding between the Corporation’s Management and Senior Editors representing major media organisations in the country. According to him, “The establishment of this Forum is driven by the imperative of sustaining engagement and fostering a deeper understanding of the Corporation’s mandate, policies, and programs among the high echelons of the nation’s media industry”.

Adding that “The ultimate objective is to facilitate robust collaboration, enhance public awareness, and strengthen public confidence in the Deposit Insurance System in Nigeria, contributing to the overall stability of the nation’s financial system”.

He further explained that the deposit insurance system implemented by the NDIC is an important component of the nation’s financial safety net.The Corporation’s operations which focuses on minimising bank runs and bank failures through strict banking supervision, reimbursement of insured depositors in the event of bank failure, and orderly liquidation of failed banks, complements the efforts of the Central Bank of Nigeria to achieve a secure and stable banking system. It also supports the fiscal authority in maintaining stability within the broader financial system, serving as the foundation for economic growth and development.

According to him “Indeed, our vast experience at the forefront of deposit insurance practice in Africa coupled with the Corporation’s resilience in the face of challenges and threats is based on the NDIC’s relentless efforts to achieve its vision: “To be one of the best deposit insurers in the world”. The roadmap, robustly outlined in our 2021 – 2025 Strategic Plan, takes into consideration the current realities and future trends, as well as sets out targets and objectives to ensure that the Corporation fulfills its mandate by providing excellent and efficient services to our stakeholders across board”.

While he outlined some of the Corporation’s key achievements, which includes  introduction of the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; enhanced collaboration with the bar and bench, leading to speedy prosecution and more informed judgements on failed banks cases, including resolution of long-drawn cases of closed banks such as Fortune and Triumph Banks in-liquidation; and putting in place policy and framework for out-of-court settlement which had enabled the corporation resolve some hitherto protracted failed bank litigations.

No wonder according to him  the Corporation has been identified for various special recognitions and awards amongst the comity of Ministries, Departments and Agencies (MDAs) by credible bodies and institutions, some of which  are,  Overall Best Public Institution among 404 MDAs in the Independent Corrupt Practices and Other Related Offences Commission (ICPC) 2023 and 2021 Ethics and Integrity Compliance Scorecard (EICS);

2022 Platinum Award of the Bureau of Public Service Reform (BPSR) after the deployment of its Self-Assessment Tool (SAT) for excellence in service delivery. Attainment of three International Organisation for Standardisation (ISO) Certifications of the MSECB, a leading international provider of Audit and Certification Services in 2023, namely: Information Security Management System ISO/IEC 27001:2013, IT Service Management System ISO/IEC 20000-1:2011, and Business Continuity Management System, ISO 22301;

Election of the Managing Director/Chief Executive of the Corporation unopposed onto the Council of the International Association of Deposit Insurers (IADI) as Vice-Chairperson in September, 2023 in the international scene.

Just last Saturday, the Corporation received two (2) Nigeria Technology Awards (NITA) of Excellence in Adopting Emerging Technologies and Best Use of Social Media in the Federal Regulatory Agency Category.