By Clara Nwachukwu
The Nigeria Deposit Insurance Corporation (NDIC), yesterday said it paid about N113.2 billion to depositors of failed banks as of June.
The amount comprises over N101.37 billion paid to uninsured depositors of all categories of banks in liquidation and another N11.83 billion to over 443,949 insured depositors.
The Managing Director/Chief Executive, Bello Hassan, disclosed this at the opening of the 19th edition of the NDIC workshop for business editors and members of finance journalists in Port Harcourt, Rivers State.
Hassan said: “The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.
“The liquidation activities as at June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 DMBs (deposit money banks), 367 MFBs (micro-finance banks), and 51 PMBs (primary mortgage banks).”
Hassan said of the 49 DMBs in liquidation, the Corporation in September, declared 20 of them 100% insolvent when all its branches are permanently closed, assets sold and the proceeds used to settle outstanding liabilities.
He explained that liquidation dividends were paid to depositors of the 20 DMBs, indicating that the Corporation realized enough funds from the sale of their assets to fully pay all depositors of the listed banks.
The liquidation activities as at June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 DMBs, 367 MFBs, and 51 PMBs.
Insurance cover
Hassan also informed that the NDIC provided deposit insurance coverage to 981 insured financial institutions in the first half of the year.
They include 33 DMBs comprising 24 commercial banks, six merchant banks, and three non-interest banks (NIBs) plus two non-Interest windows; 882 MFBs; 34 PMBs; three Payment Service Banks (PSBs); and 29 Mobile Money Operators (MMOs).
He further disclosed in May, the Corporation developed and deployed the Single Customer View (SCV) platform for the MFBs and PMBs to strengthen the processes and procedures for data collection.
He said the platform will not only ensure the availability of quality, timely and complete data to the NDIC, but also eliminate delays often experienced in reimbursing depositors following the revocation of institutions’ licenses by the Central Bank of Nigeria (CBN).
According to him, the final phase of the implementation of the SCV for DMBs will be achieved through the incorporation of the SCV template as part of the on-going Integrated Regulatory Solution (IRS) jointly being developed with the CBN.
Regarding consumer protection, Hassan said the Corporation has strengthened its complaints resolution platforms, which include the Toll-Free Help Desk, social media handles, and complaints desks in the bank examination, special insured institutions, and claims resolutions departments, as well as in its zonal offices, to receive and process complaints from depositors.
“I underscored the determination of the management of the Corporation to work harmoniously with all stakeholders, towards enhancing the effective discharge of our mandate.
“I also outlined the vision and policy direction of the Corporation under my humble stewardship to include our determination to scale up the deposit insurance framework; the provision of timely support to insured institutions as and when required; to ensure faster and orderly resolutions of liquidated insured institutions; to continue to assist the CBN in promoting the stability of the banking system.
“Over time, we have embarked on a series of strategic initiatives to achieve our desired vision,” he said.
He therefore called for stronger collaborations to deliver services that are laced with constantly improved values to the banking public and society at large.
This, he said, informed the theme of this year’s workshop: “Boosting Depositors’ Confidence Amidst Emerging Issues and Challenges in the Banking System.”
