NDIC shuts Head office
NDIC Managing Director, Umaru Ibrahim

BY CHINYERE OBIORA, LAGOS – Nigeria Deposit Insurance Corporation (NDIC) has set aside N258.767 billion for reimbursement of depositors in the event of distress in any licenced bank during the 2019 fiscal year.

According to the Commission, a breakdown of the amount indicated that N109.686 billion is provided for depositors of Deposit Money Banks (DMBs) and N149.081 billion set aside for depositors of Primary Mortgage Banks (PMBs) and Micro Finance Banks (MFBs) in the country.

Managing Director and Chief Executive Officer of the Corporation, Umaru Ibrahim gave the figure at NDIC’s defence of its 2019 budget estimates before the House Representatives Committee on Insurance and Actuarial Matters.

The NDIC boss said the estimates are consistent with its mandate of providing financial guarantee to depositors of failed banks towards promoting public confidence in the nation’s banking sector.

He explained that the existing arrangement remains critical in sustaining the stability as well as promoting the safety of Nigeria’s financial system. 

Ibrahim said in fulfillment of NDIC’s mandate to provide technical assistance to licensed banks, the Corporation, in partnership with the Central Bank of Nigeria (CBN), has invested in the acquisition of a new software called the Integrated Regulatory Solution (IRS) for a more robust surveillance and supervision of insured financial institutions in the country.

He explained that the software would enable DMBs generate real time online data among themselves as well as assist regulators to access data online from the DMBs. 

Similarly, Ibrahim said the National Association of Microfinance Banks Unified Information Technology Platform (NAMBUIT) was introduced by CBN/NDIC and Association of MfBs to enhance operational capacity of the MfBs.

The project is being financed by CBN and NDIC in the ratio of 60:40 per cent respectively given its relevance in growing the nation’s MfB sub-sector. 

On NDIC’s mandate of providing financial succour to eligible licensed and insured banks, Ibrahim said a total of N140 billion has been earmarked for DMBs while N300 million is for MfBs and PMBs.

He stated that it was important for banks to always take advantage of existing opportunities to access financial assistance offered by the Corporation in the overall interest of the safety and stability of the banking industry.

In his remarks, Chairman of the House of Representatives Committee on Insurance and Actuarial Matters Hon. Olufemi Fakeye noted that the NDIC has carved a niche for itself as the leading Deposit Insurer in Africa.

He specifically acknowledged the Corporation’s role in addressing the defunct Skye Bank issue and establishing the Polaris Bank Ltd as a bridge bank.

The Lawmaker urged NDIC to be more pro-active in detecting and addressing distress in DMBs as a way of sustaining public confidence in the banking system.

He also lauded the Corporation’s pro-activeness in preventing systemic crisis in the nation’s banking system, adding that the various mechanisms adopted to resolve distress issues have helped to curb worrying manifestation of crises in the system.

The Committee chairman charged to NDIC to keep up its good works of ensuring the high level of public confidence in the financial sector is maintained.

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