The Nigeria Deposit Insurance Corporation (NDIC) has established a special desk at the Economic and Financial Crimes Commission (EFCC) to strengthen the investigation and prosecution of parties responsible for bank failures.

NDIC’s chief executive officer, Bello Hassan, disclosed this at the 2023 NDIC workshop, organised for business editors and members of the Finance Correspondents Association of Nigeria (FICAN), on Wednesday in Owerri.

Mr Hassan said the dedicated desk at the EFCC would enable closer collaboration and coordination between the two agencies, facilitating the exchange of information, expertise, and resources.

He said the synergy was crucial for ensuring that bank failure cases were thoroughly investigated and those responsible were brought to justice and that the corporation had introduced the Single Customer View (SCV) framework to enhance speedy payment of insured sums to depositors of closed banks.

This initiative streamlined identifying, verifying, and compensating eligible depositors, ensuring they received their insured funds promptly upon bank closure, noted the NDIC boss.

Mr Hassan spoke further on the positive outcomes achieved due to the NDIC’s dedication and efforts toward the corporation’s goal, pointing out that the NDIC had also enhanced collaboration with the bar and the bench.

According to him, this leads to speedy dispensation of justice and more informed judgements on failed bank cases.

Mr Hassan said the NDIC had equally put in place a policy and framework on Alternative Dispute Resolution for out-of-court settlement. He noted that this enabled the corporation to resolve some protracted failed bank litigations.

The NDIC chief also mentioned that the corporation reviewed the framework for the Differential Premium Assessment System (DPAS) to make it more risk-sensitive and account for significant developments in the Nigerian banking system since its adoption in 2008.

Mr Hassan also disclosed that the corporation had reached an advanced stage in reviewing the maximum deposit insurance coverage to account for the impact of macroeconomic developments since its last review.

“It is our belief that the new coverage level, once approved, will go a long way in reinforcing depositors’ confidence in the NDIC’s deposit guarantee scheme,” Mr Hassan said.

The NDIC boss also said the corporation had enhanced public awareness of the benefits and limitations of the deposit insurance system and financial literacy to complement the consumer protection efforts of the Central Bank of Nigeria.

Mr Hassan said the corporation had invigorated its liquidation activities and greatly increased its debt recovery rate.

According to him, this has led to the declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks in liquidation.

The NDIC chief said this was to reduce the rate at which small depositors were defrauded, thereby enhancing confidence in the banking system.

“We have also improved our systems, processes and procedures to promote transparency and accountability in our operations, amongst other humble achievements,” Mr Hassan explained.

(NAN)