Bank Failure: NDIC assures Nigerian depositors of safety of their money
The Nigeria Deposit Insurance Corporation (NDIC) has assured bank depositors of the safety of their monies in the unlikely event of bank failure.
Kabiru Katata, Director, Research Policy and International Relations Department of NDIC, said this on Tuesday in Port Harcourt.
He gave the assurance in a lecture at the 2022 workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN).
Mr Katata said that the corporation had a strong safety net system in collaboration with the Central Bank of Nigeria (CBN).
He described deposit insurance as a safety net instrument used by the government to ensure the stability of the banking system and to protect depositors.
According to him, the corporation welcomes complaints of bank customers seeking redress against unfair treatment.
“No CBN, NDIC staff will tell you that any bank is having issues so, if you hear the rumours, discard them.
“In an unlikely event where it is true, it will be announced and be assured that 99.9 per cent of your deposits are safe.
“Once in a while, there might be issues but the safety net system is strong. NDIC has its resolution power, CBN has their own too,” he said.
He said that no country would achieve development without the majority being involved in the financial system.
Mr Katata said that without financial inclusion, poverty would not be effectively eradicated from the country.
The director listed some challenges faced by the corporation to include legal challenges to revocation and liquidation activities and lack of public awareness of the Deposit Insurance System (DIS).
He said that the corporation also conducted cyber-security examinations in conjunction with the CBN to review the adequacy of information technology controls put in place by banks.
The lecture is titled ‘The Role of the Nigeria Deposit Insurance Corporation (NDIC): Beyond Deposit Insurance’.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Economy
Oman implements Arab world’s first liquefied hydrogen project
Oman is working to establish the world’s first commercial corridor to export liquid hydrogen. Liquid hydrogen is produced by cooling and liquefying hydrogen to minus 253°C.
Health
ECA, Osinbajo lead push for sustainable domestic health financing
The UN Economic Commission for Africa and former Vice-President Yemi Osinbajo are leading efforts to promote sustainable domestic health financing in Africa.
Heading 4
Warren Buffett steps down as Berkshire chairman, names son as successor
Mr Buffett, 96, will remain on the board as chairman emeritus while his son takes over as chairman.
States
CR-SEMA, NEMA assess UniCross drainage channels over flooding
CR-SEMA, in collaboration with NEMA, has begun assessing drainage channels at the University of Cross River on Friday.
World
South Korea’s Lee rules out military involvement in Middle East conflict
South Korean President Lee Jae-myung said on Friday he would not deploy military assets to the Middle East in a way that could draw the country into conflict.
States
Adamawa police arrest two suspects over theft of N3 million irrigation pipes
The command’s spokesperson, Suleiman Nguroje, said the pipes were stolen from the farm of the late Alhaji Bamanga Tukur, located in the Gayewa area of Yola South LGA.
