NDIC

Kaduna, March 1, 2024: The Nigeria Deposit Insurance Corporation (NDIC), has advised customers of closed banks to utilise the virtual verification platforms for payment of their deposits.

NDIC’s Managing Director, Bello Hassan, gave the advise on Thursday during the NDIC Special Day at the ongoing 45th Kaduna International Trade Fair, Kaduna.

Represented by Hauwa Gambo, Deputy Director, Communications Department, NDIC, Hassan said the Corporation had launched the Deposit Tracer Initiative in partnership with a mobile money operator, to enable depositors access their unpaid balances through mobile accounts.

Hassan said the Corporation also deployed a mobile application and updated its website for online claims processing, to offer depositors the option of virtual verification during payout exercises.

This, he said, would address apathy among depositors with small balances, adding that the NDIC had significantly improved its processes to ensure swift payment of insured sums to depositors.

He said the Corporation has introduced a “Single Customer View” framework, to expedite payment to depositors of closed banks while collaborating with the judiciary for prosecution of failed insured institutions.

The NDIC helmsman said the efforts had improved debt recovery rate which enabled the declaration of 100 per cent liquidation dividends to uninsured depositors.

He said the Corporation successfully reimbursed depositors during the recent closure of 179 microfinance banks, and four Primary Mortgage Banks (PMBs), which prompted timely payments of insured sums.

According to Hassan, the deployment of digital remote payment strategies by the Corporation stimulate electronic funds transfer to verified depositor’s alternate bank accounts.

“It is essential to emphasis that payments are ongoing with depositors holding funds exceeding the insured limit set to receive liquidation dividends following debt recovery and asset sales,” he said.

Abuja, Feb. 2, 2024: The Nigeria Deposit Insurance Corporation (NDIC) has called on creditors of Gracefield Microfinance Bank (MFB) in-liquidation to come for verification for payment of their claims.

The Corporation on its official X on Friday, said the exercise would also include former staff of the MFB.

NDIC said the Corporation was in the process of paying liquidation dividends to creditors of the MFB.

The Corporation advised all eligible creditors of the MFB to meet NDIC officials in its zonal offices or visit the website at www. ndic.gov.ng for the verification.

It said the exercise would take place between Feb. 1 and March 8.

”NDIC, the official liquidator of the defunct bank (in-liquidation) is in the process of paying liquidation dividends (first dividend) to creditors of defunct Gracefield MFB,” it said.

The Corporation listed the states where creditors would meet with its officials to include Lagos, Enugu, Benin, Kano, Ilorin, Bauchi, Port-Harcourt, Sokoto, Yola, Owerri, Abeokuta and the Federal Capital Territory (FCT).

Lagos, Dec. 17, 2023: Nigeria Deposit Insurance Corporation (NDIC) says it has paid insured sum of over N1.7 billion to customers, following the revocation of licenses of Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs).

Mr Bello Hassan, Managing Director/Chief Executive Officer, NDIC, said this at the 2023 NDIC Editors Forum, on Saturday in Lagos.

The meeting had the theme, “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future.”

Hassan said, “recall earlier this year the Central Bank of Nigeria revoked the licenses of 183 institutions comprising Microfinance Banks and Primary Mortgage Banks.

“And we quickly advertised and told affected depositors to get the required documents and come forward for verification so that we can pay them the insured amount.

“So, in terms of insured amount, we have paid more than 1.7 billion to more than 22,000 customers and we are calling on those customers that had no Bank Verification Number attached to their accounts to come forward to get their claims verified so that we can pay them the insured amount.

“We are still on that. So, I’m using this opportunity to appeal to those depositors to come forward so that they can be verified and their claims paid.”

The insured deposit is the first claim that NDIC pays to depositors upon revocation of a bank’s licence by the CBN.

The maximum specified limits for the MFB and PMB sub-sectors are N200, 000 and N500, 000 per depositor per bank, respectively.

The NDIC boss said the Deposit Insurance System implemented by the corporation was an important component of the nation’s financial safety net.

He said the corporation’s operations focused on minimising banks’ risks and failures through strict banking supervision, reimbursement of insured depositors in the event of failure, and orderly liquidation of failed banks.

“It complements the efforts of the Central Bank of Nigeria to achieve a secure and stable banking system as well as support the fiscal authority in maintaining stability within the broader financial system, serving as the foundation for economic growth and development,” he said.

Hassan also said the corporation, like other financial safety net players in Nigeria, had been faced with similar challenges that had impacted the nation’s financial system.

These challenges, he said, were caused by two main factors: macroeconomic factors and the changing dimensions of the financial services industry.

“Though some of the challenges are universal, others are unique and domesticated.

“It is within this context that the NDIC aligns itself with the Central Bank of Nigeria’s efforts towards strengthening the banking industry through enhancing prudential thresholds and other regulatory instruments,” Hassan said.

Kano, Dec. 8, 2023: The Nigeria Deposit Insurance Corporation (NDIC) says it is prepared to conduct 100 percent  liquidation dividend payments in the sum of N16.18 billion for depositors of 20 closedown banks.

Already the Corporation has asked depositors to come forward for verification and payment of their deposits that are in excess of the guaranteed sums, otherwise called “liquidation dividends”.

The NDIC Managing Director, Bello Hassan stated this during the NDIC Day at the ongoing 44th Kano International Trade Fair on Thursday in Kano.

He said the closedown banks covered by the exercise include Liberty Bank, City Express Bank, Assurance Batik, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA),

Premier Commercial Bank, North South Bank, and Prime Merchant Bank.

He said also affected are: Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank.

Hassan said following the recent revocation of licenses for 179 Microfinance Lanes (MFDS) and four Primary Mortgage Banks (PMBS) by the Central Bank of Nigeria, the NDIC immediately commenced liquidation of the banks and began disbursing Insured sums to the depositors within just 7 days of the closure of the Microfinance banks.

“It is Important to note that out of these, the NDIC has paid N1.5 billion to 41,034 depositors of 129 MFBs and PMBs.”

According to him, the payments were still ongoing and depositors with funds exceeding the standard will receive liquidation dividends after recovery of debts and sale of physical assets of the closed banks.

The Managing Director said it was imperative to note that in the unfortunate event of bank failure, the insurance coverage for depositors varies across different banking institutions.

“While depositors of Deposit Money Banks, Primary Mortgage Banks, Non-Interest Banks, Payment Service Banks, and subscribers of Mobile Money Operators are insured up to a maximum limit of N500,000 per depositor per bank, for depositors of Microfinance Banks, the maximum insurance Limit stands at N200,000 per depositor per bank.

“These insured limits undergo process reviews by the Board of the Corporation, ensuring comprehensive coverage for the majority of depositors.

“Furthermore, depositors holding licenses exceeding the insured sums receive regular payments of the excess in the form of liquidation dividends, that also extends to the benefit of creditors and shareholders of the respective banks,” he said.

He assured that the NDIC would continue to work in collaboration with the Central Bank of Nigeria to ensure effective supervision of banks and adherence to procedures, guidelines and the Code of Corporate Governance for banks, which safeguards the safety and stability of the Nigeria Banking system.

He called on the general public, especially traders and businessmen, to always ensure that their funds are saved in licensed banks and not kept in their homes or shops to avoid the risks of fire, theft and armed robbery.

Abuja, Nov. 6, 2023: The Nigeria Deposit Insurance Corporation (NDIC), has bagged the Independent Corrupt Practices and Other  Related Offences Commission (ICPC) 2023 Ethics and Integrity Compliance Scorecard (EICS) for Ministries, Department and Agencies (MDAs).

Mr Bashir Nuhu, the Director, Communication and Public Affairs Department of NDIC, said this in a statement in Abuja on Sunday.

Nuhu said the assessment encompassed the measurement and monitoring of key  performance indicators in categories such as management culture and structure, financial management and administrative systems.

Nuhu said the Corporation excelled with a score of 91.30 per cent at the EIC which involved 404 MDAs.

”The EICS report emphasises the ICPC’s commitment to mitigating abuse of office and corruption by promoting ethics and integrity benchmarks within government agencies, ultimately contributing to more effective service delivery.

”These achievements have been possible due to the Corporation’s effective and ethical operational procedures aimed at instilling transparency and accountability,” he said.

Nuhu said the Corporation remained dedicated to ensuring the safety of deposits and contributing to the stability of the country’s financial system.

Abuja, Sept. 27, 2023: The MSECB, a leading international provider of Audit and Certification Services has granted the Nigeria Deposit Insurance Corporation (NDIC) three ISO certifications.

A statement by Mr Bashir Nuhu, the Corporation’s Director, Communication and Public Affairs in Abuja on Tuesday, listed the certification as Information Security Management System (ISO/IEC 27001:2013).

Others are Information Technology Service Management System ISO/IEC 20000-1:2011 and the Business Continuity Management System, ISO 22301.

Nuhu said the certifications followed rigorous and independent audit exercise which confirmed that the Corporation was in compliance with the requirements for the three standards.

He said the Information Security Management System focused on how organisations managed and protected their information assets so they would remain safe and secured, using this robust framework.

Nuhu said that the Information Technology Service Management System focused on how  to ensure effective and resilient services in today’s changing service delivery environment

”Business Continuity Management System, ISO 22301 focuses on the requirements for a management system to protect against, reduce the likelihood of, and ensure businesses recover from disruptive incidents,” he said.

Lagos, Aug. 18, 2023: The Nigeria Deposit Insurance Corporation (NDIC) will begin the investigation of the directors and officers of the 183 banks whose licences were revoked earlier this year.

The Managing Director of the NDIC, Mr Bello Hassan, said this at a one-day capacity building workshop for law enforcement agencies on Thursday in Lagos.

He said the law enforcement agencies including the Economic and Financial Crimes Commission (EFCC) and the Nigerian police, among others, would soon be called to investigate sharp practices by the directors of these defunct banks.

“As you are all aware, the Central Bank of Nigeria recently revoked banking licenses of 183 MicroFinance Banks (MFBs) and Primary Mortgage Banks (PMBs) which may require you to be called upon to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions,” he said.

Hassan, represented by Mr Henry Fomah, Head of Legal Department of NDIC, noted that through collaborative efforts of agencies, 12 prosecution cases were currently on-going at various courts.

“There are 25 on-going investigation at the Nigeria Financial Intelligence Unit (NFIU), 11 with the EFCC and five concluded investigations with the Federal Ministry of Justice for advice and prosecution,” he said.

According to him, this indicates that the corporation as well as other government agencies are on the right course through collaboration.

This, he said, would bring to book errant directors, officers, managers of these banks that led to their collapse adding that a stable financial system could not be guaranteed if the banking industry was not well sanitised.

“The corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive at enhancing the synergy between all of us in the areas of law enforcement relating to investigation and prosecution of financial malpractices.

“I want to use this forum to appeal to the members of the task force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the task force,’’ he said.

He added that the corporation was not unaware of the challenges of investigating and prosecuting financial malpractices and bank fraud cases urging officers not to relent in their efforts.

The NDIC boss noted that the advancements in information technology with new possibilities in banking operations had equally exposed the banking subsector to emerging threats.

He said the situation had increased the burden on the regulators and supervisors to enhance their operational capacities as well as heightened the need for more collaboration between agencies involved in the fight against banking malpractices.

“This workshop is, therefore, among the steps taken to provide a platform for the agencies concerned to sharpen their skills, share ideas and be well-equipped to face the challenges.

“We recognise that, for the corporation to achieve its mandate and objectives in a more efficient and effective manner; and for the banking system to thrive on the gains of a stable financial system; we must all rise up to the challenge of bringing to book those who might have contributed to the failure of their banks,’’ Hassan said.

Mr Kofo Salam-Alada, the Head of Legal Services at CBN, said it was essential for agencies that would collaborate with regulators to have deep insight into how regulators operate.

“A lot of gaps have been seen which is why we must commend the Nigerian Deposit Insurance Corporation for having been the vanguard of sponsoring capacity building exercises for the past 12 years,” Salam-Alada said.

The aim of the workshop is to equip officers involved in the investigation and suspicion of financial malpractices in the banking system with necessary skills required to carry out their duties diligently, with particular focus on failed banks.

The workshop will also enhance their skills and knowledge as law enforcement officers and/or staff of agencies involved one way or the other in the investigation of banking malpractices with special emphasis on distressed banks.