Nigeria Deposit Insurance Corporation (NDIC)

The Nigeria Deposit Insurance Corporation (NDIC), said it paid N1.45 billion to 16, 324 depositors of 34 closed Deposit Money Banks (DMBs) in 2017.

According to the Corporation, the figure is higher than the N0.61 million paid to 13 depositors in 2016.

Alhaji Umaru Ibrahim, NDIC’s Managing Director/Chief Executive Officer, said this in the Corporation’s 2017 Annual Report, a copy of which was made available to the News Agency of Nigeria (NAN) in Abuja on Sunday.

Ibrahim said that N8.25 billion was paid to 442,661 insured depositors of DMBs in-liquidation as at Dec. 31, 2017, as against N6.80 billion paid to 426,337 depositors as at Dec. 31, 2016.

According to him, the figure represents an increase of 21.32 per cent over the amount paid in 2016.

“NDIC paid N13. 24 million to 173 insured depositors of Micro Finance Banks (MFBs) in-liquidation in 2017 compared to N8.49 million paid to 110 depositors in 2016.

“To date, the sum of N2.88 billion has so far been paid as insured deposits to 81,611 depositors of 187 closed MFBs as at Dec. 31, 2017, as against N2.87 billion paid to 81, 438 depositors in 2016.

“Similarly, N15.38 million was paid as insured deposits to 170 depositors of Primary Mortgage Banks (PMBs) in 2017 compared to N7.97million paid to 75 depositors in 2016.

“On the aggregate, N68.40 million was paid to 840 depositors of 46 PMBs in-liquidation as at Dec.311, 2017, as against N53.03 million paid to 670 depositors in 2016,’’ the report quoted Ibrahim as saying.

On bank supervision, Ibrahim said NDIC collaborated with the Central Bank of Nigeria (CBN) to supervise the activities of 25 DMBs, a non-interest bank, 1,008 MFBs and 38 PMBs in the year under review.

He said the supervision was done using the Risk Based Supervision approach, through an on-site examination and off-site surveillance of insured institutions.

According to Ibrahim, the continuous supervision of insured institution is to ensure financial system stability in the country.

To further promote confidence in the banking public through consumer protection, the NDIC boss said the corporation investigated various petitions and complaints received from bank customers and other stakeholders.

“It also ensured the affected customers’ complaints of ATM frauds, conversion of cheques and suppression of deposits among others are appropriately addressed.

“The NDIC also conducted risk based examination of 300 MFBs and 10 PMBs in 2017, compared to 350 MFBs and 10 PMBs examined in 2016 respectively,’’ he said.

On failure resolution, Ibrahim said that Keystone Bank ltd, was acquired by Sigma Golf-River Bank Consortium on March 23, 2017 of which the consortium paid N25 billion as consideration for the acquisition.

He reiterated that Savannah Bank plc was yet to commence operation but the joint committee of NDIC and CBN would continue to engage its owners to facilitate the operation in the interest of depositors and creditors.

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