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NDIC Paid Over N11.93Bn To Closed Banks’ Depositors – Ibrahim

The Nigeria Deposit Insurance Corporation (NDIC) on Friday said it had paid a cumulative sum of over N11.93 billion as insured amount to depositors of closed licensed banks between 1994 to date.

The payments comprised N8.25 billion paid as insured amount to 442,999 depositors of closed DMBs;  N2.97 billion paid to 83,415 depositors of closed MFBs, and over N70.53 million paid to 869 depositors of closed PMBs.

This is even as the corporation puts the recovered money from debtors of liquidated Deposit Money Banks (DMBs), MFBs and Primary Mortgage Banks at about N29.541 billion.

The corporation disclosed that during the period, it realized N21.502 billion from the disposal of physical assets of closed DMBs even as N404.74 billion and N78.17 million were also realised from closed MFBs and PMBs’ disposed assets.

In addition, it hinted that it had paid  N116.258 billion as liquidation dividends to depositors, creditors and shareholders of the closed DMBs, MFBs and PMBs.

Giving these figures at a media briefing to commemorate the  corporation’s 30th Anniversary in Abuja, the Managing Director, Mallam Umaru Ibrahim, explained that in furtherance of its statutory roles, the corporation had been collaborating with the CBN and other relevant institutions, through designing and implementation of appropriate policies, to ensure the nation’s financial system stability.

Ibarhim, who was represented by the Director, Communication and Public Affairs Unit, Dr, Sunday Oluyemi, at the forum, the Managing Director, also spoke of other initiatives by the corporation to protect the interest of depositors in the banking sector.

He listed some of the policy measures that helped it to achieve this to include, the Adoption of Risk-Based Supervision Framework, Development of Framework for Early Warning Signals to detect problem banks, Development of Framework for the Identification and measurement of Systemically Important Banks (SIBs) and Articulation of a Framework for the Provision of Financial and Technical Assistance to deserving Insured Institutions.

He clarified: “The NDIC collaborates with the CBN to ensure that the Institutions remain healthy at all times and/or where there are problems, they are detected and addressed promptly. Supervision guarantees stability, integrity, soundness and efficiency in the banking system and is employed by NDIC for the protection of depositors’ interest.

“The supervisory activities of the corporation are carried out through a combination of On-site Examination and Off-site Surveillance. The collaboration between CBN and NDIC over the years has reduced the bank examination cycle, enhanced monetary policy, promoted safe and sound banking practices as well as assist in resolving Troubled Financial Institutions.

“NDIC and CBN, proactively respond to developments and challenges in banking operations through appropriate policy framework which have produced great results in the interest of the banking industry.

“The success recorded by the Corporation in this area include: Adoption of Risk-Based Supervision Framework, Development of Framework for Early Warning Signals to detect problem banks, Development of Framework for the Identification and measurement of Systemically Important Banks (SIBs) and Articulation of a Framework for the Provision of Financial and Technical Assistance to deserving Insured Institutions”, Ibrahim added.

The deposit insurance expert re-assured stakeholders in the nation’s banking system  in particular and the economy in general of the corporation’s readiness “not only to sustain the high standard recorded, but to raise the bar in line with our core values of honesty, respect and fairness, discipline, professionalism, team work and passion.”

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