Nigeria Deposit Insurance Corporation ,NDIC, has vowed to protect bank customers by ensuring the stability of the banking industry.
The commission said this during a visit by the Council of the Chartered Institute of Directors ,CIoD, Nigeria.
In the last two years, the NDIC has been actively liquidating and verifying claims for depositors and stakeholders of several banks.
These include both commercial banks and microfinance banks whose licenses were withdrawn by the Central Bank of Nigeria ,CBN.
In 2023, the NDIC commenced verification of the depositors 179 Microfinance Banks ,MFBs, and four Primary Mortgage Banks ,PMBs.
The official Liquidator of the under listed 179 Microfinance Banks ,MFBs, and four Primary Mortgage Banks ,PMBs, which licenses were recently revoked by the Central Bank of Nigeria ,CBN, is commencing verification of the depositors of the banks in-liquidation to effect payment of the Insured Deposits:
In November 2023, it paid N1.393bn to depositors of 110 closed banks.
It’s understood that a first tranche of liquidation dividend, totaling N46.6bn, has been declared and is being paid to eligible depositors of Heritage Bank.
During the visit, the President and Chairman of CIoD Nigeria, Tijjani Borodo, commended the NDIC for its notable achievements in bank liquidation and resolution.
He said that poor corporate governance has been a major contributing factor to bank failures.
According to him, the CIoD Nigeria has instituted mechanisms and procedures to sanction erring directors found culpable of unethical conduct.
He reaffirmed the Institute’s strong commitment to promoting high standards of governance and leadership across all sectors, including the banking industry.
Addressing the Directors’ Council, the NDIC MD/CE, Mr. Bello Hassan, expressed appreciation to the CIoD leadership in promoting professionalism and corporate accountability.
Hassan reiterated NDIC’s commitment to depositor protection and financial system stability.
He explained that corporate governance is central to the Corporation’s operational mandate and critical in strengthening the integrity and resilience of banks as well as instilling public confidence in the financial system