Jan 28, 2020

Insurance Archives - Daily Mail Online


October 21, 2019310

Nigeria Deposit Insurance Corporation (NDIC) said it has paid N11.29 billion as insured deposit to over 500,000 customers of closed financial institutions since its inception 30 years ago .

Managing Director/Chief Executive, NDIC, Alhaji Umaru Ibrahim, disclosed this in Abuja at a press conference to flag off activities to commemorate 30th  anniversary of the Corporation.

He said the anniversary provides an opportunity to undertake a comprehensive review of the Corporation’s past legacies and a platform to fine-tune its vision and mission, while also allowing the management to cast a searchlight on the future, particularly the challenges and opportunities.

Noting that over the past 30 years, NDIC has delivered on its deposit guarantee mandate, Ibrahim stated: “Since its inception, the Corporation successfully responded to economic realities and yearnings of depositors by periodically increasing the Maximum Deposit Insurance Coverage 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 ¦ 50,000 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.

“To date, the NDIC has paid a cumulative sum of over  ¦ 8.25 billion as insured amount to 442,999 depositors of closed DMBs;  paid over  ¦ 2.97 billion to 83,415 depositors of closed MFBs,  and over  ¦ 70.53 million was paid to 869 depositors of closed PMBs.”

Highlighting the impact of the bridge bank initiative in resolution of the failure of  Afribank, Spring Bank and BankPHB in 2011 and Skye Bank in 2018, Ibrahim said: “The bridge bank initiative safeguarded 12,667 jobs, protected deposit liabilities of over ¦ 1.759 trillion which ensured that depositors had uninterrupted access to their funds, and prevented the systemic repercussions of the failure of the bank on the entire financial system. The Bridge bank option engendered macro-economic stability, sustained daily operations of the failed banks including meeting maturing obligations and enhanced the confidence of Depositors and other Stakeholders.”

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