November 29, (THEWILL) – The Nigeria Deposit Insurance Corporation (NDIC) has said it is committed to the protection of bank customers’ deposits in line with its statutory mandate.
It also said it is partnering with the Central Bank of Nigeria (CBN) and other stakeholders to reinforce financial system stability towards promoting the nation’s economic development.
This disclosure was made by the NDIC Managing Director/CEO, Mr Hassan Bello, while speaking at the ongoing 20th edition of the NDIC Workshop for Business Editors and members of the Finance
Correspondents Association of Nigeria (FICAN), in Owerri, Imo State.
Mr Bello said the current NDIC leadership had laid out its key focus that aimed to scale up the deposit insurance framework and provide timely support to insured institutions as and when required.
He noted that this would ensure faster and orderly resolutions of liquidated insured institutions, as well as assist the monetary authority in promoting the stability of the banking system.
He said it was in line with this objective that the Corporation launched the five-year 2021 -2025 Strategic Plan.
According to him, the plan “was formulated in consideration of current realities and trends, as well as the desire to differentiate the Corporation by providing excellent and efficient services to our stakeholders across board.”
He said the initiative had yielded the desired results and earned the Corporation several recognitions both within and outside Nigeria.
His words, “I am glad to report that our commitment in this regard has not gone without yielding the desired results.
“We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks; we have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases.”
He added that the Corporation has “equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which had enabled us to resolve some hitherto protracted failed bank litigations; we have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008; and we have established a special desk at the Economic and Financial Crimes Commission (EFCC) which has energized investigation and prosecution of parties responsible for failure of banks.”
“The Corporation has also reached an advanced stage in the review of the maximum deposit insurance coverage, to account for the impact of macroeconomic developments, since its last review.
“It is our belief that the new coverage level once approved will go a long way in reinforcing depositors’ confidence in the NDIC’s deposit guarantee scheme,” he said.
The NDIC boss further disclosed that the Corporation, in collaboration with the CBN, had stepped up efforts towards complementing the apex bank’s drive towards consumer protection.
He said the measure had reduced the rate at which small depositors were defrauded thereby enhancing confidence in the banking system.
“In complementing the consumer protection efforts of the CBN, we have enhanced public awareness on the benefits and limitations of the deposit insurance system and financial literacy, to reduce the rate at which small depositors are being defrauded, thereby enhancing confidence in the banking system.”
He added that the Corporation has invigorated its liquidation activities, and greatly increased debt recovery rate leading to declaration of 100 percent liquidation dividends to depositors of over 20 deposit money banks in-liquidation.
He added, “we have also improved our systems, processes and procedures to promote transparency and accountability in our operations, amongst other humble achievements.”
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
