The Nigeria Deposit Insurance Corporation (NDIC) has begun paying all depositors of banks affected by the recent license revocation by the Central Bank of Nigeria (CBN).

The affected banks include 178 Microfinance Banks and four Primary Mortgage Banks, 62 of which had already stopped operations, and 74 were declared insolvent. At the same time, 12 were temporarily distressed, and the remaining six were voluntarily liquidated.

The Managing Director of NDIC Alh. Bello Hassan gave the assurance Friday while speaking during a two-day capacity-building workshop organised for senior management staff of the corporation in collaboration with the Bureau of Public Procurement held at Four Points by Sheraton hotel, Ikot Ekpene with the theme: ‘Result Based Procurement: A Strategic Approach.”

Hassan who was represented by the Executive Director, Operation, Alh Mustapha Ibrahim said that the corporation would not compromise standards and would also ensure that no room is left for public panic over the safety of bank deposits.

He stated that NDIC would continue to strengthen the financial system to appropriately support the economic advancement of the nation and also contribute meaningfully to financial system stability.

He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a Deposit Insurer; others being; the prudential Regulation & Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria.

“These components continue to safeguard the safety and soundness of the banking system as well as promote financial stability.

“Following the recent revocation of the licenses of 178 Microfinance Banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum

“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums.”

Hassan expressed delight that the collaboration and training of Procurement Staff by BPP has facilitated waste reduction, blocked leakages, enhance healthy competition and transparency, and by extension would make NDIC become “one of the Best Deposit Insurers in the world”.

In his remark, the Director-General of the Bureau of Public Procurement, Alh. Mamman Ahmadu said that any public procurement without plans and records is tantamount to criminality.

Ahmadu, represented by the Director, Research and Development/ICT, Alh. Aliyu Aliyu assured that the agency would continue to collaborate with NDIC to ensure smooth sailing on procurement.

SOURCE:https://brandspurng.com/2023/08/07/ndic-to-pay-insured-sum-to-depositors-of-182-liquidated-banks/