Owerri, Nov. 30, 2023 – The Nigerian Deposit Insurance Corporation (NDIC) is reviewing its maximum deposit insurance coverage to account for the impact of current macroeconomic developments.
Bello Hassan, the NDIC Managing Director, said this on Wednesday in Owerri during the opening ceremony of the 2023 Finance Correspondents and Business Editors’ Conference.
He said that the new coverage level, once approved, would go a long way in reinforcing depositors’ confidence on the NDIC’s deposit guarantee scheme.
Hassan reiterated the determination of the current management to work harmoniously with all stakeholders, particularly the fourth estate of the realm, toward a more effective discharge of the Corporation’s mandate.
He said the key focus of the management, under his watch, was to scale up the deposit insurance framework by providing timely support to insured institutions as and when required.
The NDIC boss said part of the objectives was also to ensure faster and orderly resolutions of liquidated insured institutions as well as assist the monetary authority in promoting the stability of the banking system.
He said the management had delivered on its pledges by providing excellent and efficient services to stakeholders across board
“I am glad to report that our commitment in this regard has not gone without yielding the desired results.
“We have introduced the Single Customer View (SCV) framework that has enhanced speedy payment of insured sums to depositors of closed banks,
“We have enhanced collaboration with the bar and the bench, leading to speedy dispensation of justice and more informed judgements on failed banks cases.
“We have equally put in place policy and framework on Alternative Dispute Resolution for out-of-court settlement, which had enabled us to resolve some hitherto protracted failed bank litigations.
“We have reviewed the Framework for Differential Premium Assessment System (DPAS) to make it more risk sensitive and account for significant developments that have taken place in the Nigerian banking system since its adoption in 2008.
Hassan said the NDIC had also established a special desk at the Economic and Financial Crimes Commission (EFCC) which had energized investigation and prosecution of parties responsible for failure of banks.
“In complementing the consumer protection efforts of the CBN, we have enhanced public awareness on the benefits and limitations of the deposit in insurance system and financial literacy, to reduce the rate at which small depositors are being defrauded, thereby enhancing confidence in the banking system;
“We have invigorated our liquidation activities, and greatly increased debt recovery rate leading to declaration of 100 per cent liquidation dividends to depositors of over 20 deposit money banks in-liquidation,” he said
Hassan said the NDIC had also improved its systems, processes and procedures to promote transparency and accountability in its operations. (GBN)
