Tag: NDIC

The Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Oludare Sunday, has called for enhanced collaboration between the Corporation and the Chartered Institute of Bankers of Nigeria (CIBN) in addressing emerging risks and challenges within Nigeria’s banking sector.

The MD/CE made the call during a courtesy visit by the President/Chairman of the Council of the CIBN, Prof. Pius Olanrewaju, and members of his executive team to the Abuja headquarters of NDIC.

The NDIC Chief Executive emphasized the need for a stronger partnership between both institutions in critical areas such as digital banking, cybersecurity, fraud and forgery prevention, and sound risk management.

The MD noted that while the phenomena of the emerging issues are on the rise, regulators and operators must come together to proffer solutions which help build a stronger financial ecosystem that withstands the vagaries of the innovations to deliver value to the economy.

While commending the growth of the CIBN as a professional body over the years, and its positive impact on the banking system, the NDIC boss further called on the Institute to take a critical interest in working more closely with regulators to fashion innovative failure resolution strategies that strengthen the overall resilience of the banking sector.

In a statement by Hawwau Gambo, Head of Communication and Public Affairs at the Corporation, the NDIC MD reaffirmed the Corporation’s commitment to supporting professional bodies such as the CIBN in developing and implementing initiatives that promote innovation while upholding sound risk management frameworks and ensuring financial system stability.

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President and Chairman of Council of the CIBN, Prof. Olanrewaju particularly commended the NDIC for its notable milestone achievements, highlighting the upward review of deposit insurance coverage aimed at strengthening public confidence in the banking system; the deployment of technology to expedite the reimbursement of depositors of the failed Heritage Bank; and the commencement of liquidation dividend payments within one year of the bank’s closure.

While expressing confidence in the capacity of the MD/CE to uphold the trust reposed in the Corporation by the public based on his sound track record and expertise, Prof. Olanrewaju noted that these accomplishments by the Corporation have significantly enhanced depositor and investor confidence in the financial system.

The CIBN President also expressed appreciation to the NDIC for its invaluable contributions and active role as a member of the Institute’s Governing Council, noting that its participation has greatly strengthened the Council’s oversight functions, policy direction, and ethical leadership.

The Nigeria Deposit Insurance Corporation (NDIC) has said that nearly all depositors in Nigeria’s financial system are adequately protected under its enhanced coverage framework.

Speaking at the Corporation’s Special Day at the ongoing Abuja International Trade Fair on Thursday, the Managing Director and Chief Executive of NDIC, Mr. Thompson Oludare Sunday, disclosed that 98.98 per cent of depositors in Deposit Money Banks (DMBs), 99.27 per cent in Microfinance Banks (MFBs), 99.34 per cent in Primary Mortgage Banks (PMBs), and 99.99 per cent in Payment Service Banks (PSBs) are fully covered.

According to him, the expansion in coverage was achieved through the upward review of the maximum deposit insurance limit across various bank categories.

“Currently, the NDIC insures depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks up to a coverage limit of five million naira,” Sunday said. “Depositors of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are insured up to two million naira.

This provides stronger assurance to millions of Nigerians that their savings are safe.”

The NDIC boss cautioned Nigerians to be wary of fraudulent financial schemes warning that “It is important for Nigerians to remain vigilant against Ponzi schemes and other fraudulent investment platforms. Always ensure your funds are placed only in Central Bank of Nigeria licensed banks, all of which are covered by deposit insurance provided by the NDIC. This vigilance is crucial to protecting your hard-earned savings,” he said.

He explained that in the event of bank failure, depositors with funds above the insured limit first receive an initial payout up to the maximum coverage, while balances above that amount are settled through liquidation dividends.

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“Liquidation dividends refer to payouts made to depositors and creditors from proceeds generated from the sale of a failed bank’s assets and recovered debts,” he noted. “These are paid on a pro-rata basis, meaning depositors receive a proportionate share of the recovered funds relative to their outstanding balances beyond the insured limit.”

Citing a recent case, Sunday referenced the revocation of Heritage Bank’s license on June 3, 2024. He said NDIC promptly reimbursed insured depositors using the Bank Verification Number (BVN) in partnership with the Nigeria Inter-Bank Settlement System (NIBSS) to identify alternate accounts for payment.

“Depositors with sums exceeding five million naira were first paid up to the insured amount, and liquidation dividends are being paid subsequently from recovered assets and debts,” he explained. “The first tranche of liquidation dividends commenced on April 25, 2025, and payments continue as the Corporation realises asset sales and debt recoveries. This approach demonstrates NDIC’s effectiveness in ensuring comprehensive depositor protection and financial stability.”

Earlier, the President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu, represented by Sir Agaba Idu Jideani, said the theme of this year’s trade fair – Sustainability, Consumption, Incentives, and Taxation – reflects the need to build resilient institutions and inclusive economic growth.

“We are pleased to note the alignment between this theme and the mandates of NDIC, which provides a safety net for depositors, contributes to financial system stability, and supports confidence in our banking sector,” Obegolu said. “The Corporation’s four broad mandates – Deposit Guarantee, Banking Supervision, Pension Resolution, and Banking Regulation – are fundamental pillars of Nigeria’s financial ecosystem.”

He said NDIC’s role is critical for businesses, particularly small and medium-sized enterprises (SMEs), as it ensures access to stable financial services and fosters confidence in investment.

“By extending deposit insurance coverage beyond deposit money banks to include microfinance banks, mortgage banks, non-interest banks, payment service banks, and mobile money operators, NDIC has shown responsiveness to the evolving dynamics of Nigeria’s financial landscape,” he added. “These interventions not only protect depositors but also create a more enabled environment for SMEs and entrepreneurs to participate confidently in the economy.”

The ACCI president also called for stronger recognition of women in enterprise. “At the Abuja Chamber of Commerce and Industry, we have established a gender policy and introduced a national definition of women-owned businesses, which we are advocating for widespread adoption. If we accept that women make up at least half of the population, then recognising and strengthening their capacity in business is not only sensible but essential for national growth,” he said.

The Nigeria Deposit Insurance Corporation (NDIC) has called for the participation of stakeholders in the financial services industry, policymakers, and the general public by providing feedback on the ongoing revision of the International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems

NDIC in a statement said the revised guidelines that were launched by IADI in May 2025, aim to strengthen deposit insurance frameworks in response to global financial changes, including digital innovation and recent banking crises, such as the March 2023 turmoil.

According to the statement, the revision is aimed at comprehensively addressing structural changes, including digital innovation, the growing role of deposit insurers in resolution, and lessons learned from the banking turmoil in March 2023, which is the most significant systemic stress event since the 2007-09 global financial crisis.

The corporation said, as a founding and committed member of IADI, it recognized the importance of the ongoing revision and hereby invites stakeholders and the general public to actively participate in the process by reviewing the document.

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“The IADI Core Principles are used by jurisdictions, including Nigeria, as a benchmark for assessing the quality of their deposit insurance systems and for identifying gaps in their deposit insurance practices and measures to address them.

“The Core Principles are also used by the International Monetary Fund (IMF) and the World Bank in the context of the Financial Sector Assessment Programme (FSAP), to assess the effectiveness of jurisdictions’ deposit insurance systems and practices.

“The first set of the Core Principles was issued jointly by the IADI and the Basel Committee on Banking Supervision (BCBS) in June 2009 while the document is subjected to periodic revision order to keep it up-to-date with evolving trends on the global financial system landscape,” NDIC noted.

It urged the stakeholders to make their input through https://ndic.gov.ng/wp-content/uploads/2025/06/Draft-Revised-IADI-Core-Principles.pdf

The Nigeria Deposit Insurance Corporation (NDIC)’s operational standards, mandate implementation, commitment to ethical leadership and sound corporate governance are promoting banking sector stability.

President, Chartered Institute of Directors (CIoD) Nigeria, Tijjani Borodo, disclosed this during a courtesy visit by the CIoD Governing Council to the Management of the Nigeria Deposit Insurance Corporation (NDIC) at the corporation’s head office in Abuja.

While commending the NDIC for its notable achievements in bank liquidation and resolution, he noted that poor corporate governance has been a major contributing factor to bank failures.

He stated that as the apex professional body for directors in Nigeria, the CIoD has instituted mechanisms and procedures to sanction erring directors found culpable of unethical conduct. He reaffirmed the Institute’s strong commitment to promoting high standards of governance and leadership across all sectors, including the banking industry.

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Borodo described the visit of the Governing Council of the CIoD opportunity to strengthen and sustain the partnership between the Institute and the NDIC, particularly in the area of capacity building through board induction programmes, executive leadership development, and governance training tailored to the specific needs of directors in both the public and private sectors.

In response, the NDIC Managing Director/CE, Bello Hassan, expressed appreciation to the CIoD leadership in promoting professionalism and corporate accountability. He emphasized the NDIC’s commitment to depositor protection and financial system stability, stressing that corporate governance is central to the Corporation’s operational mandate and critical in strengthening the integrity and resilience of banks as well as instilling public confidence in the financial system.

Hassan further reiterated the corporation’s readiness to sustain its partnership with the Institute in advancing a strong culture of corporate governance among the NDIC’s executive staff and across the broader financial industry.

The Nigeria Deposit Insurance Corporation (NDIC) has reaffirmed its commitment to driving innovation and digital transformation across its operations, following its performance at the 2024 Federal Public Service Innovation Competition.

Out of 155 entries submitted by Ministries, Departments, and Agencies (MDAs) for the competition organised by the Office of the (OHCSF), NDIC emerged both as the overall winner and third-place finalist, securing the first and third prizes, respectively, at the award ceremony held in Abuja last Tuesday.

In a statement signed by the NDIC’s Acting Head of Communication and Public Affairs, Hawwau Gambo, said the Corporation’s success reflects its unwavering commitment to deploying technology to enhance service delivery and employee productivity.

Speaking on the Corporation’s commitment while receiving the team in his office, NDIC Managing Director/Chief Executive, Mr. Bello Hassan, described the double recognition as “A testament to the innovative spirit and professionalism that NDIC nurtures.

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“Our teams have once again demonstrated the Corporation’s leadership in deploying technology and creative thinking to solve real-world challenges,” underscoring the agency’s resolve to integrate digital innovation into public service delivery.

The MD, who was represented at the ceremony by Director of the Strategy Development Department, Gwa Zachary, lauded the Office of the HOSF for fostering a culture of innovation.

He also commended his teams for their outstanding contributions, describing their work as a reflection of the Corporation’s forward-thinking mindset and problem-solving ethos.

According to him, NDIC’s dual success at the competition underscores its leadership role in aligning with national goals on digital transformation, cost-efficiency, and public service excellence.

The MD pledged that the Corporation will continue supporting scalable, tech-driven solutions that improve civil service delivery and contribute to broader national development objectives.

The Head of the Civil Service of the Federation (HOSF), Didi Walson-Jack, while announcing the results during the event, commended the Corporation for its exemplary innovation in line with federal public service reform goals.

NDIC’s first-place-winning team dubbed the Carpooling Team, developed a digital rideshare application aimed at reducing commuting costs for federal workers.

The app allows staff to coordinate ride-sharing in real-time, providing a cost-effective and eco-friendly commuting alternative.

The innovation earned the Corporation the competition’s top prize of N5 million.

A second NDIC team took third place and received N3 million for ‘Perfoma’, an internal digital platform designed to boost staff productivity and streamline administrative processes.

Described as a ‘full-packaged office suite,’ Performa enables efficient document creation, tracking, and performance monitoring within departments.

The HOSF emphasized the importance of innovation in governance, noting that it is one of the six key pillars of the Federal Civil Service Strategy and Implementation Plan 2021–2025 (FCSSIP 25).

She commended the efforts of all participating agencies for aligning with the government’s vision of a dynamic, tech-driven public sector.