Nigeria’s Money Deposit Banks are in sound condition, says NDIC

The Nigeria Deposit Insurance Corporation (NDIC) has assured bank customers in the country, that data in its possession has shown that all the Money Deposit Banks (MDBS) are in excellent condition, a such they don`t have to entertain any fear in transacting business with any of them.

The corporation also assured that “it has absolute confidence in all of the banks, and their ability to meet any banking obligations to whatever level with their customers”. Umaru Ibrahim, managing director of the Corporation made this disclosure on Wednesday, at the NDIC `s Day at the on-going 37th Kano International Trade Fair.

Ibrahim, who was represented at the occasion by Idi Umar, a director in charge of Asset Management of the Corporation, gave the assurance, while responding to questions from Journalists, said there is no need for banks customers to entertain any fear about the soundness of the Nigerian banks.

He however, cautioned Shareholders and Management Staff of all categories of Banks in operation in the country that they will be held responsible for any infraction in their banks capable of impeding their operations.  The Managing Director want the management of banks to ensure that they run their banks effectively and efficiently in a period like this when the nation is being confronted with the recession.

Commenting on some of the successes recorded  by the management of the Corporation in the recent times; he disclosed that the Corporation has been able to cover bank depositors to the tune of about 90 percent.

“It is important to note that the NDIC is a Federal Government agency established by Decree 22 of 1988 now repealed and replaced by NDIC Act 16 of 2006 with the core mandate of deposit guarantee, banking supervision, distress resolution and bank liquidation.

“Since it commenced operations in 1989, the NDIC had been discharging its mandate creditably with wide acknowledgment by key stakeholders. It is apt to reiterate the NDIC `s effort over the last 27 years was primarily to protect small depositors who have between #1.00 and up to N500,000 in deposit money banks (DMBs) in the event of bank failure.

“The deposit guarantee, therefore, covers over 90% of bank depositors while those deposits fall above this limit of coverage are equally entitled to the insured sum with additional collection referred to as liquidation dividend realized from disposal of physical assets and debts recovery” he explained.

Ibrahim clarified that the maximum deposit insurance coverage per depositor per bank has progressively increased from #50,000 at inception in 1989 to its current N500,000 per depositor per deposit money bank.  Similarly, he added that the insured limit for microfinance banks (MFBs) and primary mortgage banks (PMBs) in 209 were increased from N100,000 to N200,000 per depositor per MFBs/PMBs in 2010, pointing out that the amount is being reviewed upward this year, 2016.

“The Corporation has equally extended deposit insurance coverage to the subscribers of Non –Interest Banking Institutions, under the Sharia compliant banking services to the maximum limit of N500,000 per depositor. In addition, the Corporation had developed a framework on Pass-Through Deposit Insurance Scheme (PTDIS) to protect the subscribers of Mobile Money Operators (MMOs) with a maximum insured limit of N500,000 per subscriber of this banking product.

“We are calling on all depositors who lost their money in any closed banks to file their claims through the zonal offices of the Corporation or any of the ten (10) agent banks appointed for the payment across the nation” he pointed out.