Failed banks: Depositors fund safe – NDIC

Ini Billie, Uyo

The Nigeria Deposit Insurance Corporation (NDIC) has guaranteed depositors of their bank deposits, saying persons with money trapped in banks whose licenses have been revoked would get their insured money quickly.

The Managing Director/Chief Executive Officer of the NDIC, Bello Hassan stated that the agency is determined to ensure that the standard of the banking system is not compromised and create panic over the safety of depositors’ funds.

Speaking at the weekend in Uyo during a two-day workshop for Senior Management and Executive Staff of NDIC in collaboration with the Bureau of Public Procurement (BPP) on the theme: “Result Based Procurement: Strategic Approach”, Hassan noted that the Central Bank of Nigeria (CBN), and NDIC has commenced the liquidation exercise of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs).

“Following the recent revocation of the licences of 178 Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) has since commenced the liquidation exercise with the main purpose of paying guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum.

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums. The Corporation is leaving no stone unturned to ensure the soundness of the banking system by not compromising standards, ensuring that no room is left for public panic over the safety of bank deposits.

“This will create an enabling environment for the financial system to appropriately support the economic advancement of our great nation and also contribute meaningfully to financial system stability,” he said.

Hassan who was represented by Mustapha Ibrahim, Executive Director, Operations, NDIC, expressed delight that the collaboration and training of Procurement Staff by BPP has brought about waste reduction, blocked leakages, and enhance healthy competition and transparency, adding that it would make NDIC one of the best deposit insurers in the world.

While speaking, Director General, BPP, Mr Mamman Ahmadu said the technology trend in the sector brings about transparency, adding that procurement plans protect against corruption.

Ahmadu who was represented by Alilu Alilu, Director of BPP, Research and Development/ICT explained that the 2020 Act of the BPP makes it a crime to involve in a procurement without a plan, and urged that the training be extended to the technical team that would carry out the Act.