Finance

NDIC boss: MSMEs key to revitalisation of Nigeria’s economy

The Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, has said that now is the time to promote the Micro, Small and Medium Enterprises sector as the key component towards revitalizing the nation’s economy.

He stated this on Thursday in Benin City, Edo State, during the Corporation’s special day at the ongoing 2021 Edo trade fair, with the theme: Expanding the frontiers of MSMEs through collaboration and capacity building”.

Hassan who was represented at the event by the Senior Manager (Benin Zonal Office), Udofot Ukpong, noted that a sound and stable financial system is the pivot upon which the economic system of any nation rests.

According to him, “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.”

Hassan who restated NDIC’s mandate of protecting depositors, supervising banks, distress resolution and bank liquidation, disclosed that the Corporation has paid a cumulative amount of N11.76 billion as insured sums to 535, 815 depositors of closed banks since its inception in 1989 till date.

He added that a total of N101.7 billion had been paid as an uninsured sum as of 30 June 2021, while a total of N6.16 billion had been paid as liquidation dividends to 1,955 creditors and shareholders of closed banks.

According to him, “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.”

The NDIC boss, therefore, cautioned citizens against patronizing the services of Ponzi schemes and illegal fund managers who he termed “wonder banks”, noting that they are not licensed by the Central Bank of Nigeria as a deposit-taking institution and are not covered by the corporation.

Earlier, Aina Omo-Ojeonu, President of Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), commended NDIC for the public enlightenment, tasking them to protect depositors.

According to him, “Before now a lot of people did not know what NDIC was but your presence has changed the narrative. It makes us confident that there is an organization that is taking care of our money. We work hard for this money and want it to be protected. We don’t want a situation where we put our money in the bank and do not get.”

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