NDIC paid 100 per cent depositors of 20 failed banks — MD
…Bags Public Sector CEO of the Year
In a bid to enhance banking culture in the country, the Nigeria Deposit Insurance Corporation (NDIC) has paid 100 per cent of depositors of 20 failed banks in the country.
This was disclosed by the Managing Director of NDIC, Mr. Bello Hassan during the 2022 Nigerian NewsDirect 12th Anniversary Lecture and Awards ceremony held at Federal Palace Hotel in Lagos on Friday.
The MD who was represented by the Corporation’s Assistant Director, Media Relations and Public Affairs Department, Mrs. Hawwau Gambo said, “Our mandate has to do with banking supervision by guaranteeing the deposits to a particular limit in the event of bank failure, failure resolution and banks liquidation.
“Over the years, NDIC has successfully implemented a lot of failure resolutions in the interest of the depositors primarily to ensure continuity in the banking system.
“We have intervened several times through a breach failure resolution option in collaboration with the Central Bank of Nigeria (CBN) to clear the depositors funds.”
The Assistant Director revealed that NDIC has intervened in cases of some banks like the Skye bank merger with Afribank to Mainstream bank among others.
She said, “We are proud to say that at present that NDIC has paid 100 per cent of depositors funds of 20 failed banks and this even goes beyond the depositors up to the shareholders.”
According to her, NDIC is unique in terms of banking supervision mandate as a risk minimal considering the fact that the corporation monitor banks’ operations then advise, support and penalise them when necessary.
She stressed that the Corporation in 2023 is focusing on the aspect of rendering technical assistances to the Banking Sector, greater engagement with stakeholders not just regulators but also financial services Industry.
Mrs. Gambo while acknowledging the Award stressed that the corporation is highly honoured at the event and assured NewsDirect management of effective collaboration.
She said, “We are highly honoured to be recognised here at the 12th Anniversary of Nigerian NewsDirect and wish to convey our Managing Director congratulatory message and recognition of the newspaper as an effective Media platform that has been partnering with us to promote the benefits of deposit insurance because the public have the right to know that their deposits are protected and have confidence in the banking system.”
Recall that the Managing Director and Chief Executive officer of Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan disclosed that the Corporation has recovered depositors N8.3billion from banks and resolved 248 complaints between January to November, 2022.
He said, “I am happy to inform you that between January and November 2022, the Corporation has successfully resolved 248 complaints and helped depositors recover over N8.3billion from their respective banks.
“The complaints bothered on unauthorised withdrawals, which accounted for the highest number of 190 cases; POS issues which accounted for 33; charges/fees/fraud issues and others which accounted for 25.
“While all our complaint platforms are active and effective, we have observed that over 95, representing 38.3 per cent of total complaints came through our zonal offices, 24 per cent through our Toll-Free Help Desk and 37.7 per cent through our other platforms.
“However, we like to encourage all depositors and other bank customers to continue to avail themselves of the opportunities provided by all our complaint channels towards resolving issues with their insured institutions. We also like to call on depositors of banks in-liquidation to continue to utilise the same platforms to file their claims to the Corporation for reimbursement.”
