The Nigeria Deposit Insurance Corporation (NDIC) has announced significant strides in its liquidation activities, leading to the declaration of 100% liquidation dividends to uninsured depositors of over 20 deposit money banks in-liquidation. Bello Hassan, the Managing Director/Chief Executive of NDIC, made this revelation at the opening ceremony of the 2023 NDIC Editors Forum held in Lagos over the weekend.
Hassan highlighted that the corporation has revitalized its liquidation activities and substantially increased its debt recovery rate. The implementation of the Single Customer View (SCV) framework has played a crucial role in expediting the payment of insured sums to depositors of closed banks. He emphasized the NDIC’s commitment to collaboration with legal entities, resulting in accelerated prosecution and well-informed judgments on failed bank cases.
The Managing Director also noted that the corporation has resolved long-standing cases of closed banks, such as Fortune and Triumph Banks in-liquidation. Additionally, the NDIC has established policies and frameworks for out-of-court settlements, facilitating the resolution of previously protracted failed bank litigations.
In alignment with the Central Bank of Nigeria (CBN), Hassan highlighted NDIC’s focus on minimizing bank runs and failures through stringent banking supervision, reimbursement of insured depositors in case of bank failure, and orderly liquidation of failed banks. The corporation’s operations contribute to achieving a secure and stable banking system, supporting the fiscal authority in maintaining broader financial system stability and serving as a foundation for economic growth and development.
Hassan emphasized NDIC’s commitment to consumer protection efforts, enhancing public awareness of deposit insurance, and promoting financial literacy to reduce small depositors’ vulnerability to fraud. He stated that the ultimate goal of the editors’ forum is to foster collaboration, raise public awareness, and strengthen confidence in the Deposit Insurance System in Nigeria, thereby contributing to the overall stability of the nation’s financial system.
