NDIC set to pay failed bank depositors

Acheme Jack, Kano

Nigeria Deposit Insurance Corporation (NDIC), has urged depositors who lost their money in liquidated banks to file their claims through the zonal offices of the corporation or any of the 10 banks appointed for the payment across the nation.

The Managing Director of  NDIC, Umar Ibrahim at NDIC “Special Day” during the ongoing 37th Kano International Trade Fair said “ customers of 13 Money Deposit Banks that have failed over time have been fully paid by NDIC as such those still facing challenges should endeavor to apply.”

He named the appointed banks to include First Bank of Nigeria, United Bank for Africa, Zenith Bank, Wema Bank, Heritage Bank, Union Bank, Fidelity Bank , Skye Bank, Unity Bank and Diamond Bank.

Ibrahim said those behind the woes of the failed banks are being vigorously pursued as some have forfeited their assets while some cases are ongoing in many courts across the country.

He however, assured that despite the economic recession, Nigerian banks are safe and the agency is always examining their books and offer advice, especially on over exposures to avert banking crisis.

He said retrospectively that NDIC injected over 4.6 billion naira to avert disaster the last time there was crisis in the banking sector and would not want a repeat of such situation.

The MD, while sympathizing with market fire disaster victims in Kano state called on shop owners, traders and businesses to imbibe banking habits to save their money and stop keeping money at home.

He said the economic loses underscored the need for our business to patronize banks so as to safeguard their funds from loses to fire, theft and armed robbery.

“The habit will help them benefit from electronic banking services, money transfer services, banking loan facilities and deposit insurance from NDIC,” stressed Ibrahim.

The NDIC boss said the corporation has extended deposit insurance coverage to the subscribers of Non-interest banking institutions, under the Sharia compliant banking services.

“The corporation had also developed framework on Pass-Through Insurance scheme (PTDIS) to protect the subscribers of Mobile Money Operators (MMOs) with a maximum insured limit of  N500,000.00 in order to ensure coverage of over  90 percent depositors in that sub sector,” explained Ibrahim.

Wonder banks

He decried the activities of ‘Wonder Banks,’ just as he warned members of the public to be wary and desist from patronizing banks he described as fraudulent.

“I wish to sound a note of caution to discerning members of the public to beware and avoid any contact with these fraudsters as many unsuspecting public are still falling victims to the mouth-watering offers of hot returns. Members of the public are therefore advised to patronize insured banking institutions that display the NDIC stickers in their banking halls or entrance,” cautioned the NDIC boss.

He added that NDIC in collaboration with Bank Customers Association of Nigeria (BCAN) recently organized a town hall meeting in Kano in recognition of the importance of the public awareness in the advocacy and engagement with all stakeholders for purpose of financial education and the role of NDIC in bank customer’s protection.

Speaking on the roles of NDIC, he described the corporation as a Federal Government agency with the primary aim of protecting small depositors who have been N1.0 and up to N500, 000 in Deposit Money Banks (DMB) in the event of bank failure.

“The deposit guarantee therefore covers over 90 per cent of bank depositors while those whose deposits fall above this limit of coverage are equally entitled to the insured sum additional collection referred to as liquidation dividend realized from disposal of physical assets and debts recovery.”

According to him, “the maximum deposit insurance coverage (MDIC) per depositor per bank has progressively increased from N50, 000.00 sat inception in 1989 to its current N500, 000.00 per depositor per deposit money bank (DMB).

He stated that the insured limit for microfinance banks (FMBs) and primary mortgage banks (PMBs) in 2009 was increased from N100, 000.00 to N20, 000.00 per depositor per MFB/PMB IN 2010, while in 2016, there was upward review of the deposit insured limit for depositors of PMBs to N500, 000.00 in order to ensure coverage of over 90 percent of depositors in that sub sector

The MD was represented at the event by the Director of Assets management, NDIC, Bashir Umar.