Bank Failures: NDIC Reassures Nigerians Of Safety Of Their Deposits

Posted by Ignatius Okpara Business News, Featured, Latest Headlines Sunday, April 14th, 2024

(AFRICAN EXAMINER) – The Nigeria Deposit Insurance Company (NDIC) has reassured Nigerian depositors that it remains unwavering in its commitment to prompt reimbursement to depositors affected by failed banks in the country.

Managing Director/Chief Executive of NDIC, Mr Bello Hassan stated this on the occasion of NDIC’s Special Day at the ongoing 35th Enugu International Trade Fair weekend.

Mr Hassan, who spoke through the Controller of Enugu zonal office of NDIC, Mrs. Pamela Robert noted that since the Central Bank of Nigeria revoked the licenses 179 Micro Finance Bank banks and four primary Mortgage banks in 2023, NDIC has continued to efficiently disburse insured sums to verified depositors of the closed institutions .

He added that notably, depositors who have undergone verification and have provided alternative account details have received their payments seamlessly within a record period of five working days.

According to him, “While it is worth nothing that depositors with exceeding the insured limit will receive liquidation dividends once debts are recovered and assets of the closed banks are disposed.

” Moreover, the NDIC strongly encourages depositors of affected banks to come forward with their BVN, proof of account ownership, proper identification, and/ or alternative details.

“Variious channels are available for claims including visiting the Claims Page on the NDIC website for further inquiries as we remain steadfast in fulfilling our mandate and Priotizing safety of depositors fund” he stated.

“Taking us down memory lane, the NDIC was established by the federal government under the NDIC Decree 22 of 1988, which was repealed by the NDIC Act No 16 of 2006 and recently amended as the the NDIC Act No 33 of the 2023”

He added that the primary public policy objectives of the deposit insurance system (DIS) in Nigeria is to protect the interest of depositors by providing a mechanism for reimbursement in the event of imminent or actual bank failures.

President of ECCIMA, Sir, Odeiga Jideonwo, who was represented at the event by the 1st Deputy president of the Chamber, Engr. Nnanyelugo Onyemelukwe, commended NDIC for it’s role in stabilizing the nations’s financial sector since inception.

He described NDIC as a worthy and reliable partner of ECCIMA, stressing that its regular participation in all its annual trade fairs is cherished and cannot be taken for granted.