The Managing Director of Nigeria Deposit Insurance Corporation ( NDIC ), Umaru Ibrahim has said that, the corporation has so far recovered N29 billion from debtors of liquidated deposit money bank, microfinance banks and primary mortgage banks.
He said that 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 currently covers 95 percent of depositors across the country, 96.8 million accounts and 97.63 percent of the entire accounts in the banking system.
Addressing the NDIC Special Day at the 40th Kaduna International Trade Fair along Zaria road on Thursday, the NDIC boss, who was represented by one of its directors, Mohammed Kudu Ibrahim, said that the corporation has commenced verification and payment of depositors of 154 microfinance banks and six primary mortgage banks whose licences were recently revoked by the Central Bank of Nigeria.
According to him, “The theme of the fair, ‘Consolidating Interface between Industry and Agriculture for Nigeria’s Sustainable Development’ strongly supports the Federal Government’s initiative of unleashing the full potentials of the nation’s agriculture sector to drive employment generation, robust revenue base and sustainable growth of the economy.
“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 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.”
He said that the ‘Bridge Bank’ resolution option it 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 N949.60 billion as at June 2018.
He said that NDIC has gone ahead to prosecute those found to have caused failure of the banks and secured judgement against some of them, while recovering some of the debts owed the liquidated banks and their depositors.