NDIC Pledges to Protect Depositors Through Efficient Payment System

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, has pledged that the corporation will leave no stone unturned in fulfilling its commitment to protecting depositors. This was made known at the 44th Kaduna International Trade Fair on Thursday.

Hassan, represented by the Manager of, the Communications and Public Affairs Unit, Tanko Yahaha said the corporation has been carrying out its mandate efficiently and effectively since it was established in 1989 to create an enabling environment for the financial system, promotion of sustainable growth, and development through an efficient payment system.

He said, “By discharging our public policy objectives of protecting depositors in the event of bank failures and offer a measure of safety for the banking system generally, we create an enabling environment for the financial system to support the SME sub-sector of our economy and promote sustainable growth and development through an efficient payment system.”

“The four broad mandates of the corporation are deposit guarantee, banking supervision, failure resolution and bank liquidation,” Hassan said.
According to him, “in order to consistently educate depositors, stakeholders and the general public about the presence of the Deposit Insurance Scheme (DIS), its advantages, and its drawbacks, the corporation has participated in the Kaduna International Trade Fair over the years.”
Hassan said this was significant to the corporation as it would enhance public confidence in the financial system.
He said, “If people are aware that their deposits are safe and that in the unusual event of a bank failure, a government agency will protect depositors, especially small savers.

“The corporation protects depositors through the discharge of its mandate in four critical ways namely: by guaranteeing deposits in banks; by supervising the banks in conjunction with the Central Bank of Nigeria (CBN) to ensure that they are run in an efficient manner in line with extant laws and regulations; by resolving issues of distressed banks to reduce instances of failure; and ensuring orderly and efficient liquidation of failed banks to prevent disruptions to the payment system.

“It is worthy to note that the corporation has been effectively and efficiently discharging its mandates from inception till date, living up to its public policy objectives and contributing to financial system stability.”
Hassan said, “For instance, in the Deposit Guarantee, we are happy to state that NDIC has been highly responsive in providing coverage to all eligible deposits and products as they evolve in our banking system.”
He stressed that, apart from depositors of Deposit Money Banks (DMBs), Primary Mortgage Banks (PMBs), and Microfinance Banks (MBs), the Corporation has also been responsive by extending deposit insurance coverage to depositors of Non-Interest Banks (NIBs), Payment Service Banks (PSBs) and subscribers of Mobile Money Operators (MMOs).

“Depositors of DMBs, PMBs, PSBs, and subscribers of MMOs are insured up to a maximum limit of N500,000.00 per depositor per bank, and those of MBs are guaranteed up to a maximum limit of N200,000.00 per depositor per bank.

“The corporation has also recorded similar giant strides in its other mandates which time will not permit us to delve into here,” the NDIC boss said.
He said through advertisements in the media and social media handles, the corporation repeated its calls to depositors of 20 closed banks in which it has declared 100 percent liquidation dividends to come forward for verification and payment of their deposits that are in excess of the guaranteed sums.

“The implication of this is that, through our dogged liquidation activities, the corporation has realized enough funds to fully pay all depositors of the closed banks.“Similar notices were also sent to creditors of seven DMBs in liquidation as well as depositors and ex-staff of two MBs and a PMB, details of which are still available on our website and social media handles.

“I, therefore, like to once again call on depositors, creditors, and shareholders of the listed closed banks to avail themselves of the verification platforms provided by the corporation to claim their funds.

“They are at liberty to visit any of the corporation’s nearest offices physically or utilize the NDIC app online or visit the website.”