NDIC pays N11.76bn to depositors, says prompt resolution saved banking sector from collapse –

NDIC pays N11.76bn to depositors, says prompt resolution saved banking sector from collapse – The Sun Nigeria

From Tony Osauzo and Ighomuaye Lucky, Benin

The Nigeria Deposit Insurance Corporation (NDIC) announced yesterday that it has cumulatively paid a total  of N11.76 billion as insured sums to 535, 815 depositors of failed banks since its inception till date. It added that a total of N101.7billion had been paid as uninsured sum as at June 30, 2021, while a total of N6.16 billion had been paid as liquidation dividend to 1,955 creditors and shareholders of failed banks.

Bello Hassan, Managing Director/Chief Executive Officer of NDIC, made the disclosure during the Corporation’s special day at the 2021 Edo Trade Fair in Benin City.

Represented by Udofot Ukpong, Senior Manager NDIC, Benin Zonal Office, Hassan restated their mandate of protecting depositors, supervising banks, distress resolution and bank liquidation, addng that a sound and stable financial system is the pivot upon which the economic system of any nation rests.

“Instructively, the corporation has declared full payment of insured and uninsured sums to depositors of 18 banks in liquidation. This implies that the corporation has realized liquidation dividend to pay all depositors of the banks who present themselves for payment”, he said.

Besides, the NDIC boss disclosed that the Corporation has responded to innovations in the financial system by extending deposit insurance cover to Microfinance Banks (MfBs), Primary Mortgage Banks (PMBs), Mobile Money Services (MMOs), Payment Service Banks (PSBs) in order to engender confidence in the financial system.

Speaking on the theme “Expanding the frontiers of MSMEs through collaboration and capacity building”, he opined that this is the time to promote the Micro, Small and Medium Enterprises sector as the key component towards revitalizing the nation’s economy. Earlier, Aina Omo-Ojeonu, President of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), commended NDIC for the public enlightenment, tasking it to protect depositors.

Meanwhile, the Corporation has said its prompt resolution of banks’ failure over the years saved the banking sector from systemic collapse.

Mrs Ronke Shokefun, Chairman NDIC Board of Directors, said this at a retreat organised by NDIC for Members of the House of Representatives Committee on Insurance and Actuarial Matters, on Thursday in Lagos.

Speaking at the retreat with the theme “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance (DI)” she said the prompt resolution of banks’ failure had also in the corporation’s 32 years of existence, further provided a Financial Safety-Net for the banking sector.

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