NDIC pays N119bn to creditors of closed banks

By Cosmas Chukwu

The Nigerian Deposit Insurance Corporation (NDIC) took the center stage Friday in reassuring creditors and depositors of banks of the safety of their funds even when such institutions fail.

To buttress this NDIC said it has paid a total of N119.101billion as insured sums to 535,815 depositors, creditors, and shareholders of the closed bank as of 29th December 2021.

The corporation said it has also declared full payment of insured and uninsured sums to depositors of eighteen banks in liquidation.

Managing Director of NDIC, Bello Hassan made this known on Friday during the corporation’s special day at the 33rd edition of the Enugu International Trade Fair with the theme of opening up Nigeria’s business windows for competitiveness in the emerging global markets.

Hassan who was represented by the Deputy Director and Zonal Controller, South East of the NDIC, Stella Henshaw, said that the corporation has paid a total of N101.117 billion as uninsured sums.

He said that contributing to financial system stability by reducing the likelihood of bank runs and safeguarding depositors by providing an orderly means of resolution and payment in the event of bank failures was part of the corporation’s principal public policy goals.

He explained that the theme for this year’s trade fair aligns with the federal government’s national development plans and sectoral interventions targeted at supporting small and medium scale enterprises and improving competitiveness in the international market.

“The mandate of the NDIC focuses on the protection of depositors, especially small and less sophisticated ones against the risk of bank failure, thereby contributing to the stability of the financial system,” he said.

He called on traders a businessmen to always save money in licensed banks where their savings are protected by the NDIC and desist from keeping hard-earned monies in homes or shops to avoid the danger of fire, theft, armed robbery floods or other forms of losses.

“The corporation has promptly responded to emerging issues in the emergence of fintech and other forms of digital financial services with a view to extending deposit insurance coverage to new financial services,” he said.

He advised the public to always endeavour to report all cases of dubious activities by banks to both the NDIC and the CBN.