NDIC Increases Deposit Insurance Coverage For Banks, Mobile Money Operators

The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions. Speaking at a press briefing in Abuja on Thursday, the NDIC Managing Director/Chief Executive, Bello Hassan, said the coverage ensures that depositors will be reimbursed up to a certain limit for their deposits in the event of a bank failure. He said the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs). The NDIC boss said by increasing deposit insurance coverage, the corporation is ensuring that the move will strengthen the banking system and encourage further financial inclusion within the country. Hassan said the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions. He said: “Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 per cent of depositors compared to the previous 89.20 per cent. “Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 per cent of depositors (up from 98.76 per cent) and significantly increasing the value of covered deposits (from 14.38 per cent to 34.43 per cent of total deposits). “For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 per cent of depositors (up from 97.98 per cent) and boosting the value of covered deposits (from 10.77 per cent to 21.04 per cent of total deposits). “Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000, providing near-complete protection (99.99 per cent) for depositors and raising the value of covered deposits to 43.10 per cent of the total (from 40.60 per cent). “For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs. “Deposit insurance coverage levels for all licensed deposit-taking financial institutions refer to the amount of protection provided to depositors in deposit-taking financial institutions in case the financial institution fails or goes bankrupt.”

NDIC Pays N16.18bn Dividends To Depositors Of 20 Liquidated Banks

Following impressive recoveries from debtors and realisation of assets of banks in liquidation, the Nigeria Deposit Insurance Corporation (NDIC) has announced declaration of N16.18 billion liquidation dividends to depositors, creditors and shareholders of 20 banks in-liquidation.  Liquidation dividend represents amount in excess of the insured sums paid by the NDIC to depositors of a closed bank from recoveries made from realisation of assets of failed financial institutions. It also covers amount paid to creditors and shareholders of closed bank after full payment to depositors of such defunct bank.  To this end, the Corporation has commenced verification and payment of stakeholders covered by the declarations within 30 days, starting from 28th September 2023.  A statement signed by Director, Communication & Public Affairs of the Corporation, BASHIR A. NUHU, Monday in Abuja, theongoing payment is sequel to earlier payment of various sums which cumulatively amounted to N45.45 billion as liquidation dividends in respect of the 20 banks as at July 2023. The closed banks covered by the exercise are Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank and Amicable Bank in-liquidation.  Relevant stakeholders have been requested to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website, www.ndic.gov.ng to download, complete and submit the verification form with prescribed supporting documents to the dedicated email for the purpose: claimscomplaints@ndic.gov.ng. 

NDIC assures depositors of 182 closed MfBs, PMBs speedy payment 

The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors affected by the recent revocation of the licenses of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN) of speedy payment of their insured deposits. The Managing Director of NDIC Mr. Bello Hassan gave the assurance during a three-day capacity-building workshop for management staff of the corporation at the weekend in Ikot Ekpene, Akwa Ibom state. The event had as its theme: ‘Result Based Procurement: A Strategic Approach’ was organized by the Corporation in collaboration with the Bureau of Public Procurement (BPP). The Managing Director represented by the Executive Director, Operation, Mr Mustapha Ibrahim stressed that the Corporation would not compromise standards as it would also ensure that depositors get their money promptly to prevent a panic situation. Hassan stated that NDIC would continue to strengthen the financial system to appropriately support the economic advancement of the nation and also contribute meaningfully to financial system stability. “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation (NDIC) continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a Deposit Insurer; others being; the prudential regulation & supervision, failure resolution, deposit insurance and lender of last resort function of the Central Bank of Nigeria (CBN). These components continue to safeguard the safety and soundness of the banking system as well as promote financial stability.  “Following the recent revocation of the licenses of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum.  “The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums,” he added  Hassan expressed delight at the collaboration and training of procurement staff by BPP saying it has helped to conserve funds, block leakages, and enhance healthy competition and transparency. In his remark, the Director-General of BPP, Mr. Mamman Ahmadu cautioned that any public procurement without plans and records is tantamount to criminality. Ahmadu, represented by the Director, Research and Development/ICT, Mr. Aliyu Aliyu assured that the agency will continue to collaborate with NDIC to ensure smooth sailing on its procurement activities.