NDIC recovers N29bn from liquidated banks
The Nigeria Deposit Insurance Corporation says it has so far recovered N29bn from debtors of liquidated deposit money banks, microfinance banks and primary mortgage banks in the country.
Speaking at the 40th Kaduna International Trade Fair on Thursday, the Managing Director, Umaru Ibrahim, said NDIC insured limits of N500,000 for depositors in deposit money banks, non-interest bank and primary mortgage banks and N200,000 for depositors in microfinance banks, which he added currently covered 95 per cent of depositors across the country, 96.8 million accounts and 97.63 per cent of the entire accounts in the banking system.
Represented by a director in the corporation, Mohammed Ibrahim, Ibrahim said that the corporation had commenced verification and payment of depositors of 154 microfinance banks and six primary mortgage banks that their licences were recently revoked by the Central Bank of Nigeria.
He also disclosed that the corporation had gone ahead to prosecute and secured judgement on them as well as recovered some debts owed the liquidated banks.
He said the ‘bridge bank’ resolution option in the case of Skye Bank saved over 6,000 jobs in the bank and ensured operations continued in the bank’s 227 branches across the country.
He noted that the theme of the fair, ‘Consolidating Interface between Industry and Agriculture for Nigeria’s Sustainable Development’ strongly supported the Federal Government’s initiative of unleashing the full potential of the nation’s agriculture sector to drive employment generation, ensure robust revenue base and sustainable growth of the economy.
He said, “NDIC is celebrating its 30th anniversary this year. It was established in 1989 as a critical member of the Nigeria financial safety net, with the broad public policy objectives of protecting bank depositors and promoting public confidence in the financial system. The corporation protects depositors by guaranteeing their deposits in the unlikely event of a bank failure.
“The NDIC has extended deposit insurance coverage to depositors of non-interest banking institutions and subscribers of mobile money operators to the maximum limit of N500,000 through the pass-through deposit insurance scheme and non – interest deposit insurance scheme.”
“The ‘Bridge Bank’ resolution option adopted in the case of Skye Bank saved over 6,000 jobs in the company and ensured normal operation in all the 227 branches of the bank with the establishment of Polaris Bank as the bridge bank and ensured that depositors have unhindered access to their deposits in excess of N949.60bn as of June 2018.”
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