The President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Nnanyelugo Onyemelukwe, has called on the Central Bank of Nigeria (CBN) to strengthen its regulatory frameworks to minimise bank failures and shield citizens from financial distress.
Onyemelukwe was speaking during the Nigeria Deposit Insurance Corporation (NDIC) Special Day at the ongoing 37th Enugu International Trade Fair on Friday.
The ECCIMA President emphasised that proactive oversight was essential to sparing Nigerians from the “harrowing experience” of losing their savings, especially during the current period of economic hardship.
He expressed deep appreciation for the NDIC’s consistent participation in the fair, noting that the corporation’s presence helps bring its vital activities to the “greater purview” of the Nigerian public.
Onyemelukwe remarked that the special day serves as a critical platform for interaction and exchange, allowing stakeholders to learn more about the corporation’s mandate.
According to the ECCIMA boss, the NDIC remains a beacon of hope for depositors, acting as a final safety net when financial institutions are mismanaged or forced to close.
Reflecting on the history of the Nigerian financial sector, the President highlighted how the establishment of the NDIC transformed the landscape for small and large-scale savers alike.
He recalled the “banking tsunamis” of the past, where depositors suffered significant losses when banks abruptly shut their doors without any recourse.
He noted that the corporation now provides a “great confidence backup,” ensuring that the fear of losing hard-earned money no longer keeps the teeming population of depositors away from formal banking institutions.
While acknowledging the current stability in the sector, Onyemelukwe urged the CBN to ensure that its evolving policies do not inadvertently trigger panic or put undue pressure on the banking public.
He stressed that the synergy between the apex bank and the NDIC is fundamental to maintaining the “near tranquility” currently enjoyed in the financial system.
He maintained that even in the face of a challenging economic cycle, the regulatory bodies must prioritise the interests of the citizens to ensure long-term growth and trust.
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The ECCIMA President commended both the NDIC and the CBN for their resilience and efforts toward maintaining financial stability despite the broader macroeconomic headwinds facing the nation.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) reaffirmed its commitment to financial stability, revealing that its current insurance hooks protect approximately 99 percent of depositors in the country’s banking system.
The Managing Director and Chief Executive of the Corporation, Mr. Thompson Oludare Sunday, made the disclosure at the NDIC Special Day at the 37th Enugu International Trade Fair.
Speaking on the theme, “Empowering MSMEs for Global Competitiveness,” Sunday emphasized that the Corporation remains a bedrock for small businesses by safeguarding their capital against bank distress.
Addressing the audience at the ECCIMA-organized fair, the NDIC boss noted that the Corporation proactively enhanced its coverage limits in 2024 to reflect economic realities.
Currently, depositors of Deposit Money Banks (DMBs), Mobile Money Operators, and Non-Interest Banks are insured up to ₦5,000,000, while those in Microfinance and Primary Mortgage Banks are covered up to ₦2,000,000.
Explaining the “magic” behind the reimbursement process, Sunday clarified that the NDIC does not rely on government intervention to pay depositors.
Instead, it utilises the Deposit Insurance Fund (DIF), a pool of resources built from premiums paid by licensed banks. This system ensures that the Corporation can respond swiftly without straining the national budget.
The Managing Director further highlighted the role of technology in modernising claims.
He revealed that the Bank Verification Number (BVN) now serves as a primary tool for “automatic” reimbursement.
By using the BVN to locate alternative accounts, the NDIC can often credit depositors within days of a bank’s closure, bypassing the bureaucratic delays of the past.
For high-net-worth individuals with balances exceeding the insured limits, the MD offered reassurances that their funds are not lost.
He explained the concept of “liquidation dividends,” which are payments made from the recovery of debts and the sale of physical assets belonging to failed institutions.
”This is a continuous process. Additional dividend payments are made in tranches as more funds are recovered. We have demonstrated this successfully with the liquidation of Union Homes, Aso Savings and Loans, and the more recent Heritage Bank Limited, where multiple tranches of dividends have already been disbursed,” Sunday stated.
The NDIC chief also used the platform to warn the public against fraudulent “wonder banks” and investment schemes.
He urged attendees to visit the NDIC pavilion at the trade fair to learn how to verify the status of their financial service providers and protect their hard-earned savings.
