Nigeria Deposit Insurance Corporation (NDIC) says it has paid an insured sum of over N1.7 billion to customers following the revocation of licences of microfinance banks (MFBs) and four primary mortgage banks (PMBs).

Bello Hassan, NDIC’s managing director and chief executive officer, said this at the 2023 NDIC Editors Forum on Saturday in Lagos.

The meeting had the theme, “Stocktaking of Deposit Insurance Practise: Assessing the Past, Evaluating the Present and Forecasting the Future.”

Mr Hassan recalled that the Central Bank of Nigeria (CBN) revoked the licences of 183 microfinance banks and primary mortgage banks.

He noted that the commission subsequently asked affected depositors to submit the required documents to receive their insured amount.

“So, in terms of the insured amount, we have paid more than N1.7 billion to more than 22,000 customers, and we are calling on those customers that had no bank verification number attached to their accounts to come forward to get their claims verified so that we can pay them the insured amount.

“We are still on that. So, I’m using this opportunity to appeal to those depositors to come forward so they can be verified and their claims paid,” he said.

The insured deposit is the first claim NDIC paid depositors upon revocation of a bank’s licence by the CBN.

The maximum specified limits for the MFB and PMB sub-sectors are N200,000 and N500,000 per depositor per bank, respectively.

The NDIC boss said the Deposit Insurance System implemented by the corporation was an essential component of the nation’s financial safety net.

He said the corporation’s operations focused on minimising banks’ risks and failures through strict banking supervision, reimbursement of insured depositors in the event of failure, and orderly liquidation of failed banks.

“It complements the efforts of the Central Bank of Nigeria to achieve a secure and stable banking system as well as support the fiscal authority in maintaining stability within the broader financial system, serving as the foundation for economic growth and development,” he said.

Mr Hassan also said the corporation, like other financial safety net players in Nigeria, had faced similar challenges that had impacted the nation’s financial system.

He said the challenges were caused by two main factors: macroeconomic factors and the changing dimensions of the financial services industry.

“Though some of the challenges are universal, others are unique and domesticated.

“It is within this context that the NDIC aligns itself with the Central Bank of Nigeria’s efforts towards strengthening the banking industry through enhancing prudential thresholds and other regulatory instruments,” Mr Hassan said. 

(NAN)