NDIC Disburses Over N1.7 Billion to Customers Post Bank License Revocation
The Nigeria Deposit Insurance Corporation (NDIC) has recently disclosed the disbursement of a staggering sum of over N3.4 million to customers, marking a crucial development following the revocation of licenses of Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs).
Mr Bello Hassan, the astute Managing Director/Chief Executive Officer of NDIC, made this revelation during the 2023 NDIC Editors Forum held in Lagos. The thematic focus of the event was aptly titled, “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future.”
Earlier this year, the Central Bank of Nigeria took the decisive step to revoke the licenses of 183 institutions, including Microfinance Banks and Primary Mortgage Banks. Promptly responding to this regulatory move, NDIC issued notifications urging affected depositors to submit requisite documents for verification, facilitating the swift payment of the insured amounts.
Hassan highlighted that the corporation had disbursed more than N1.7 Billion to a substantial number of over 22,000 customers. However, he underscored the need for depositors without a Bank Verification Number (BVN) linked to their accounts to come forward for verification to expedite the payment of their insured claims, emphasising that this process is still ongoing.
The insured deposit, constituting the initial claim disbursed by NDIC in the wake of a bank’s license revocation, adheres to the maximum specified limits for the MFB and PMB sub-sectors: N200,000 for Microfinance Banks and N500,000 for Primary Mortgage Banks per depositor per bank, respectively.
Hassan elucidated on the critical role of the Deposit Insurance System, characterising it as an indispensable component of the nation’s financial safety net. The corporation’s operations centre around mitigating banks’ risks, strict banking supervision, reimbursing insured depositors in the event of failure, and orchestrating the orderly liquidation of failed banks.
Amidst challenges posed by macroeconomic factors and evolving dimensions of the financial services industry, Hassan affirmed NDIC’s alignment with the Central Bank of Nigeria’s efforts to fortify the banking industry by enhancing prudential thresholds and other regulatory instruments.
Source: Vanguard
