The Nigeria Deposit Insurance Corporation (NDIC) has reiterated its commitments toward ensuring safety and security of banks customers’ deposits. The managing director of the corporation Hassan Bello disclosed this on Thursday at the 18th edition of Abuja International Trade Fair in Abuja.
Just as he warned against illegal fund managers, often referred to as Wonder Banks or ponzi Schemes “These entities offer high-interest rates and profits that are too good to be true, leading to devastating losses for many. It’s important to note that these “wonder banks” are neither licensed by the Central Bank of Nigeria nor covered by the NDIC deposit insurance scheme. Members of the public are therefore advised to patronize only banking institutions with a display of the NDIC Stickers carrying the words: “Insured by NDIC” in their banking halls or entrances and various branches across the country”.
Speaking at the NDIC special day, Hassan Bello explained that “Indeed, Nigerian depositors are our priority and our foundation is built on ensuring the safety and security of their deposits. This ideal is encapsulated in our strap line; “Protecting your bank deposits!”. This is crucial for financial inclusion because it gives Nigerians the assurance that their money is safe and accessible when needed”.
He said this year’s theme, “Sustainable Financing and Taxation as Drivers for the New Economy,” is especially relevant given the determination of the government’s efforts towards achieving sustainable growth by strengthening the financial environment to boost economic growth.
According to him, this falls in line with the Corporation’s contributions of ensuring the stability of the financial system by effectively complimenting the CBN in supervising the banking sector and safeguarding depositors’ funds from the adverse effects of bank failures when it occurs.
Adding that the Corporation’s activities through the supervision of banks, continuous monitoring and oversight serves as consumer protection for depositors which enhances confidence in the financial system. This acts as an incentive for the unbanked to access financial services of licensed banks..
He pointed out that recently, following the revocation of licenses for 179 Microfinance Banks and 4 Primary Mortgage Banks by the Central Bank of Nigeria (CBN), the NDIC immediately commenced liquidation of the banks and began disbursing insured sums to depositors within just 7 days of the closure of these banks.
Stressing that “It’s important to note that as at 22nd September 2023, the Corporation had paid a cumulative insured sum of N1.084 billion naira to 29,573 depositors of the closed MFBs/MPBs. It is however instructive to let you know that payments are still ongoing and depositors with funds exceeding the insured limit will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks”.
Currently, the Corporation is in the process of verifying and paying liquidation dividends to depositors and stakeholders of 20 closed banks: They are Allied Bank, Peak Merchant Bank, Commerce Bank, Continental Merchant Bank, Financial Merchant Bank, Fortune Bank, Gulf Bank, Hallmark Bank, Icon Merchant Bank, Liberty Bank, Nigeria Merchant Bank, North South Bank, Premier Commercial Bank, Prime Merchant Bank, Progress Bank and Merchant Bank.
