NDIC pays N8.25bn to 442,999 depositors in 30 years

Nigeria Deposit Insurance Corporation
Nigeria Deposit Insurance Corporation

The Nigeria Deposit Insurance Corporation (NDIC) has paid insured amount of over N8.25 billion in the past 30 years of its existence to 442,999 depositors of closed deposit money banks (DMBs), N2.97 billion to 83,415 depositors of closed micros finance banks (MFBs) and over N70.53 million paid to 869 depositors of closed primary mortgage banks (PMBs). Managing Director/CEO of the corporation, Alhaji Umaru Ibrahim, confirmed the figures over the weekend in Abuja, at a press conference to kick-start events commemorating the 30th anniversary celebration of the corporation.

Established in March 1989, the corporation over time has increased the maximum deposit insurance coverage twice, from N50,000 per depositor per DMB at inception, to N200, 000 in 2006 and N500,000 in 2010. Similarly, maximum coverage per depositor of PMBs/ MFBs was increased from N100, 000 in 2006 to N200, 000 in 2010. Coverage per depositor per PMB had since been increased to N500,000 to reflect the increased deposit structure in the sub-sector and to stimulate mortgage savings. Represented by Director, Communications and Public Affairs Unit, Mr. Sunday Oluyemi, the CEO said: “Since its inception, the corporation successfully responded to economic realities and yearnings of depositors by periodically increasing the maximum Deposit Insurance Coverage (DIC).

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“This is to enhance the confidence of the public in the Nigerian financial system. On average, this is done every five years in line with Global best practice. “The corporation increased the maximum deposit insurance coverage twice, from N50,000 per depositor per deposit money bank (DMB) at inception, to N200, 000 in 2006 and N500,000 in 2010. “Similarly, maximum coverage per depositor of PMBs/ MFBs was increased from N100, 000 in 2006 to N200,000 in 2010. Coverage per depositor per PMB had since been increased to N500,000 to reflect the increased deposits structure in the sub-sector and to stimulate Mortgage Savings.

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“To date, the NDIC has paid a cumulative sum of over N8.25 billion as insured amount to 442,999 depositors of closed DMBs; paid over N2.97 billion to 83,415 depositors of closed MFBs, and over N70.53 million was paid to 869 depositors of closed PMBs.” The DIS covers all deposittaking financial institutions licensed by the CBN which include Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Non-Interest Banks (NIBs) and subscribers of Mobile Money Operators (MMOs). He said NDIC currently provided Deposit Insurance cover to 27 DMBs, 918 MFBs, 34 PMBs and two NIBs. Umaru said Nigeria banks were not only resilient but that they were sound and healthy as well as on sound footing, adding that, the corporation was collaborating with Central Bank of Nigeria (CBN) on supervision of the sector.

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“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.”

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