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  • NDIC pays N16.2b liquidation dividends for 20 failed banks

    NDIC pays N16.2b liquidation dividends for 20 failed banks

    Nigeria Deposit Insurance Corporation (NDIC) has started payment of N16.18 billion liquidation dividends to depositors, creditors and shareholders of 20 banks in-liquidation.

    This is following impressive recoveries from debtors and realization of assets of banks in liquidation.

    To this end, the Corporation has commenced verification and payment of stakeholders covered by the declarations within 30 days, starting from September 28, 2023.

    According to a statement by the Director of Communication and Public Affairs of the Corporation, Bashir Nuhu, it is instructive to note that the ongoing payment is sequel to earlier payment of various sums which cumulatively amounted to N45.45bn as liquidation dividends in respect of the 20 banks as at July 2023.

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    The NDIC, therefore, requested that all relevant stakeholders to visit any of the its offices closer to them or go to the claims page on the Corporation’s website, www.ndic.gov.ng to download, complete and submit the verification form with prescribed supporting documents to the dedicated email for the purpose: claimscomplaints@ndic.gov.ng.

    The closed banks covered by the exercise are Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank and Prime Merchant Bank.

    Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank and Amicable Bank in-liquidation.

    Liquidation dividend represents an amount in excess of the insured sums paid by the NDIC to depositors of a closed bank from recoveries made from realization of assets of failed financial institutions. It also covers the amount paid to creditors and shareholders of closed banks after full payment to depositors of such defunct banks.

  • NDIC bags ISO certifications

    NDIC bags ISO certifications

    The Nigeria Deposit Insurance Corporation (NDIC) has been awarded three ISO certifications from the MSECB, a leading international provider of Audit and Certification Services.

    The NDIC received three ISO certifications, namely: Information Security Management System ISO/IEC 27001:2013 (on how organisations manage and protect their information assets so that they remain safe and secure, using this robust framework); IT Service Management System ISO/IEC 20000-1:2011 (on how  to ensure effective and resilient services in the service delivery environment); and Business Continuity Management System, ISO 22301(on the requirements for a management system to protect against, reduce the likelihood of, and ensure businesses recover from disruptive incidents).

    According to a statement by the Director of Communication and Public Affairs of the Corporation, Bashir Nuhu, the certifications followed a rigorous and independent audit exercise, and confirmed that the NDIC is in compliance with the requirements for the three standards.

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    It said, “The ISO is an independent, non-governmental international organization that brings together experts from around the world to develop, voluntary, consensus-based, market relevant International Standards that support innovation and provide solutions to global challenges.

    “The certification is a three-year, multi-layered process that begins with an initial certification in the first year, followed by two (2) surveillance audits over the course of two (2) years.

    “In line with its vision to be one of the best deposit insurers in the world, the Corporation will continue to offer excellent services consistent with international standards and best practices to ensure that the current achievement is duly sustained.”

  • NDIC to pay liquidation dividend to depositors of defunct Peak Merchant Bank

    NDIC to pay liquidation dividend to depositors of defunct Peak Merchant Bank

    The Nigeria Deposit Insurance Corporation (NDIC) has said it will pay liquidation dividends to depositors and former staff of defunct Peak Merchant Bank.

    In a statement, the NDIC said: “As the official liquidator of the failed Banks in Nigeria, the Nigeria Deposit Insurance Corporation (NDIC), in line with its mandate wishes to inform the depositors and ex-staff (deposits) of defunct Peak Merchant Bank that it has concluded preparations to pay their first liquidation dividend.” 

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    According to a statement  by the Director, Communication and Public Affairs, NDIC, Bashir A. Nuhu, the exercise would enable depositors of the defunct bank to cross-check and ascertain their account information as well as balances with the bank as at closure. 

    “We enjoin eligible stakeholders of the defunct bank to visit any NDIC offices or visit NDIC Website for verification of their claims, which commenced yesterday and ends October 16,” it said.

  • Coalition: NDIC complies with Disability Prohibition Act

    Coalition: NDIC complies with Disability Prohibition Act

    The Coalition of Persons Living with Disabilities in Nigeria (CPLWDN), has hailed the Nigeria Deposit Insurance Corporation (NDIC) for complying with the Disability Prohibition Act.

    The coalition  stated that the credible information at its disposal indicated that the agency has diligently adhered to the 2018 Disability Prohibition Act by ensuring that the stipulated percentage of jobs was allocated “to our community in all recruitment processes under his leadership.”

    They urged the National Commission for Persons Living With Disability to publicly recognise NDIC as that would serve as a reminder to other agencies to also follow suit.

    The coalition gave the commendation during a press conference addressed by its National Coordinator, Mohammed Zaria and National Secretary, David Olarewaju yesterday in Abuja while congratulating the Managing Director/Chief Executive Officer, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, on his recent appointment as vice chairperson of the International Association of Deposit Insurers, African Regional Committee (IADI-ARC).

    The coalition said Hassan’s achievement was “a source of immense pride for our community because he believes and supports our struggles.”

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    The coalition said: “Our coalition, consisting of over 45 groups of different clusters of our community from the six geopolitical zones of the country, has come together to collectively make our voice heard and commend Nigerians for the support given to our members and organisation.

    “We express our sincere gratitude to President Bola Ahmed Tinubu for recognising Mr. Hassan’s exceptional performance and retaining him in his position as the head of NDIC. NDIC under his tenure has restored the confidence of Nigerians in the banking sector leading to investor confidence and increase in the volume of banking transactions daily.”

    “Most importantly, the NDIC stands out as the sole organisation in Nigeria that continues to focus on inclusiveness, aligning perfectly with the renewed hope agenda of the present adminstration. In celebrating his successes, we believe that he will do more to change the perception and attitude of most Nigerians towards people living with disabilities.”

    The coalition also called on the National Commission of Persons Living with Disabilities as a matter of patriotic urgency under the leadership of its Executive Secretary, James Lalu, to promptly present a certificate of compliance to Hassan on behalf of NDIC.

    The coalition added: “It is glaring that under Mr. Hassan’s exceptional leadership, the NDIC has played a pivotal role in contributing to the financial system stability of our nation’s economy.

    “The corporation’s diligence and commitment to repositioning insurance practices in Nigeria have been recognised both locally and globally. Under his leadership, NDIC conducted a review of the maximum deposit insurance coverage, aligning with international standards set by the International Association of Deposit Insurers (IADI), a feat recognised by international agencies including the MacArthur Foundations.

    “We celebrate inclusiveness and would want to be included in policy formulation and governance. We call on President Bola Ahmed Tinubu to do more in supporting our cause. While the national assembly has done well in the area of legislation, we want effective enforcement mechanisms to drive the laws.”

    They called on media houses and channels to amplify their voices and ensure that all government agencies and even the private sector make provision for “our members in adherence to the Disability Act.”

  • NDIC seeks speedy amendment of enabling act

    The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has appealed to the 9th Senate of the Federal Republic for the speedy passage of the NDIC Act, 2006 (as amended) currently before the National Assembly.

    The NDIC boss made the plea when the management of the corporation paid a courtesy call on the newly elected President of the Senate, Dr. Ahmed Ibrahim Lawan in his office on Wednesday June 26, 2019.

    Responding, the Senate President promised that the Senate would immediately commence work on the bill to amend the NDIC Act 2006 afresh as the work earlier done by the 8th Senate had lapsed with the expiration of that Assembly. He noted the importance of the bill and assured the management of the corporation that the 9th Senate would give the bill the accelerated consideration it deserved.

    Earlier, in his opening remarks, the NDIC managing director congratulated the Senate President on his election, along with the returning and first time senators on their victory at the polls. He stated the resolve of the corporation to work closely with the Senate leadership and the Senate Committee on Banking, Insurance and Other Financial Institutions to ensure a stable banking system which is critical to the stability of the nation’s financial system.

  • NDIC okays N258.8b to settle failed bank depositors

    The Nigeria Deposit Insurance Corporation (NDIC) said it has set aside N258.767 billion in the 2019 fiscal year for the payment of depositors in the unlikely event of closure of licensed banks.

    Speaking during the presentation of details of its budget before the House   of Representatives Committee on Insurance and Actuarial Matters, its  Managing Director, Umaru Ibrahim, who gave a breakdown of the funds, said N109.686 billion was provided for depositors of Deposit Money Banks (DMBs), while N149.081 billion has been set aside for depositors of Primary Mortgage Banks (PMBs) and Micro Finance Banks (MFBs).

    He said the estimates were consistent with the Corporation’s mandate of providing financial guarantee to depositors of failed banks towards promoting public confidence in the banking sector. This, he added, is critical to the sustenance of the stability of the entire financial system.

    In fulfillment of the Corporation’s mandate to provide technical assistance to licensed banks, the NDIC chief, said the Corporation, in collaboration with the Central Bank of Nigeria (CBN), has invested in the acquisition of a new software called the Integrated Regulatory Solution (IRS) for a more robust surveillance and supervision of insured financial institutions in the country. According to Ibrahim, the software will enable DMBs generate real time online data among themselves, help regulators to access data online from the DMBs.

    Ibrahim also said the National Association of Microfinance Banks Unified Information Technology Platform (NAMBUIT) was introduced by CBN/NDIC and Association of MFBs to enhance the operational capacity of the MFBs. The CBN/NDIC is financing the project in the ratio of 60/40 per cent respectively in view of the importance of the project to the growth of the MFB sub-sector.

    On the issue of NDIC’s mandate of providing financial assistance to eligible licensed and insured banks, Ibrahim said N140 billion was provided for DMBs while N300 million was provided for Microfinance and Primary Mortgage Banks. He urged the banks to take the opportunity to access the funds offered by the Corporation whenever they are required.

    Responding, the Committee Chairman, Olufemi Fakeye commended the Corporation for its pro-activeness in the prevention systemic crisis in the nation’s banking system.

    He added that the various mechanisms adopted by the Corporation since inception to resolve distress in banks had not only prevented the manifestation of crisis in the system, they have also contributed immensely to the high level of public confidence experienced in the financial sector.

     

  • NDIC proposes N98b budget for 2019

    The Nigeria Deposit Insurance Corporation (NDIC) is proposing to spend N98.1 billion in 2019.

    Though the Corporation generated a premium of N91 billion from money deposit banks and N991 million from primary mortgage banks in 2018,  it said one of its priority in 2019 is to allocate N32 billion to the completion of some key office structures at the head office and area offices.

    At the budget session with the House of Representatives Committee on Insurance yesterday, the Managing Director Umaru Ibrahim said N32.2 billion was proposed for capital expenditure for 2019.

    According to him, the fund is expected to be spent on the completion of three major projects which are its head office annex, Abuja; Lagos office, Ikoyi, and training centre in Lekki, all expected to be completed by 2020.

    Umaru added that the corporation would embark on the construction of its three zonal offices in Ilorin, Bauchi and Benin, which would be completed by 2020.

    He said: “We envisaged that the Benin land if we are lucky to get it, may cost about N400 million. We have also provided N700 million in this year’s estimate to purchase land around the head office. It is about 2,000 to 3,000 square metres so that we can build a multilayered parking space. If you go to our office now, you see a lot of cars without parking space”.

    Committee Chairman Olufemi Fakeye (APC, Osun) said the committee would embark on an oversight function at the Abuja and Lagos offices of the corporation in June to verify how the organisation had fared in its mandate

     

     

     

     

     

  • Osinbajo expresses confidence in NDIC new board

    Vice President Yemi Osinbajo has expressed confidence in the ability of the new Board and Management of the NDIC led by Mrs. Ronke Sokefun whom he described as an experienced lawyer and Umaru Ibrahim an experienced technocrat to steer the Corporation in the right direction.

    According to a statement by the Head of Communications and Public Affairs Department, Mohammed Kudu Ibrahim, Osinbajo made the comment during the courtesy visit by the Board and Management of the Corporation on Friday the 5th of April 2019, in his office at the State House, Aso Rock, Abuja.

    While congratulating the Chairman and other members of the Board for their appointment, Osinbajo also commended the Management of the Corporation for prioritizing the interests of Nigerian depositors in its choice of the Bridge Bank option for the resolution of many banks in liquidation.

    The Vice President, however, noted that a lot still needs to be done in the area of sanitizing the banking system.

    “He also stressed the need for fresh ideas to produce a more resilient structure involving the NDIC and other relevant stakeholders to address the issue of Non-performing loans in the industry and warned that the federal government was not prepared to repeat the mistakes of the past.

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    “On the issue of financial inclusion, the Vice President remarked that it was desirous for millions of poor Nigerians to be empowered through the extension of credit and urged for a sustainable framework to achieve the objectives set by the regulators.

    “He lamented that the current structure for the operation of Micro-Finance Banks (MFBs) had failed to achieve the desired goals and called for concerted efforts of the relevant institutions including CBN and NDIC to come up with a framework that would facilitate the funding of federal government social intervention programs such as the N-Power, Trader-Money, and Market-Money so as to alleviate the suffering of millions of Nigerians,” the statement said.

    It further added that: “Earlier, the Chairman of the Board of the Corporation had thanked the Vice President for his warm reception and recalled that the NDIC as a critical player in the Nigerian financial safety-net, had achieved remarkable success in the execution of its primary mandates of effective supervision of the insured banks, timely payment of insured deposits and the implementation of a robust and efficient failure resolution regime.

    “The Chairman concluded her remarks by drawing the attention of the Vice-President to the NDIC Amendment Bill currently pending before the Senate and solicited for his assistance in ensuring a quick passage of the Bill before the expiry of the present legislative session.

    “In his remarks, the MD/CEO of the Corporation, Umaru Ibrahim, FCIB mni, joined the Chairman in seeking for the assistance of the Vice President towards the speedy passage the Bill to amend the NDIC Act pending at the Senate to strengthen the capacity of the Corporation effectively supervise insured financial institutions for a safe and sound banking system in the country.

    “Commenting further on the activities of the Corporation, the NDIC boss informed the Vice President that the NDIC undertakes periodic examination of banks in collaboration with the CBN and issues reports with far reaching recommendations to the Boards of banks for compliance to ensure the safety, soundness and stability of the Nigerian banking system.”

  • How we saved 6,000 bankers from sack, by NDIC

    Not less than 6,000 workers of the defunct Skye Bank now Polaris were saved from being sacked, The Nigeria Deposit Insurance Corporation (NDIC) said on Thursday.

    Managing Director of the corporation, Alhaji Umaru Ibrahim, disclosed this while speaking at the NDIC Special Day, at the ongoing 40th Kaduna International Trade Fair.

    Ibrahim, who was represented by the Head of Communications and Public Affairs of the corporation, Alhaji Muhammad Kudu, said it was on record that the intervention also ensured stability in the banking industry.

    He said apart from ensuring that normal operations continued in all the 277 branches of the bank, the intervention also ensured that depositors of the closed bank had unhindered access to their deposits in excess of N949.6 billion as at June 2018.

    According to him, the corporation has also taken measures to ensure that all those who contributed to the failure of the bank are prosecuted to serve as deterrent to others.

    The managing director, said in February this year, a Federal High Court in Lagos had sentenced the managing director of the failed Integrated Microfinance Bank Plc,  Simon Ademola Akinteye, to 32 years imprisonment over frauds that led to the failure of the bank.

    “The corporation had  also been relentless in its debt recovery efforts particularly the debts owed to banks in liquidation so as to enhance payment of liquidation dividends to depositors whose balances were in excess of the insured limits.

    READ ALSO: We’ve recovered N29bn from debtors of liquidated banks – NDIC

    “Also in 2018, a total of N526, 397, 116.26 was recovered in respect of deposit money of banks in liquidation, N51,159,867.97 and N710, 057.83 from primary mortgage banks and micro finance banks respectively.

    “The cumulative recovery from debtors of deposit money banks, micro finance banks and primary mortgage banks as at December 31,2018 stood at N29.01 billion, N125.84 million and N290.43 million respectively.

    “These efforts were boosted by series of judgments obtained against banks in liquidation and realisation of physical assets of closed banks, apart from the conviction of the MD of the defunct integrated MFB, the Corporation also secured a landmark judgment against the First Bank of Nigeria Plc, to the tune of N556,493,034.16 in favor of depositors of Lead Merchant Bank Limited (in liquidation).

    “As the corporation marked its 30th anniversary this year, it had been three decades of resilient hard work and continuous innovations in order to achieve our goal of becoming the best Deposit Insurer in the world by the year 2020.

    “We may not be there, but the NDIC already has become a reference point in the implementation of the DIS in Africa and beyond,” Ibrahim said.

    The NDIC boss restated commitment of the corporation towards achieving a safe, sound and stable financial system geared towards sustainable economic growth.

  • We’ve recovered N29bn from debtors of liquidated banks – NDIC

    The Managing Director of Nigeria Deposit Insurance Corporation ( NDIC ), Umaru Ibrahim has said that, the corporation has so far recovered N29 billion from debtors of liquidated deposit money bank, microfinance banks and primary mortgage banks.

    He said that NDIC insured limits of N500, 000 for depositors in deposit money banks, non-interest bank and primary mortgage banks and N200, 000 for depositors in microfinance banks currently covers 95 percent of depositors across the country, 96.8 million accounts and 97.63 percent of the entire accounts in the banking system.

    Addressing the NDIC Special Day at the 40th Kaduna International Trade Fair along Zaria road on Thursday, the NDIC boss, who was represented by one of its directors, Mohammed Kudu Ibrahim, said that the corporation has commenced verification and payment of depositors of 154 microfinance banks and six primary mortgage banks whose licences were recently revoked by the Central Bank of Nigeria.

    According to him, “The theme of the fair, ‘Consolidating Interface between Industry and Agriculture for Nigeria’s Sustainable Development’ strongly supports the Federal Government’s initiative of unleashing the full potentials of the nation’s agriculture sector to drive employment generation, robust revenue base and sustainable growth of the economy.

    Read Also: FG committed to a stable financial system – NDIC

    “NDIC is celebrating its 30th anniversary this year. It was established in 1989 as a critical member of the Nigeria financial safety net, with the broad public policy objectives of protecting bank depositors and promoting public confidence in the financial system. The corporation protects depositors by guaranteeing their deposits in the unlikely event of bank failure.

    “The NDIC has extended deposit insurance coverage to depositors of non-interest banking institutions and subscribers of mobile money operators to the maximum limit of N500, 000 through the pass-through deposit insurance scheme and non-interest deposit insurance scheme.”

    He said that the ‘Bridge Bank’ resolution option it adopted in the case of Skye Bank saved over 6,000 jobs in the company and ensured normal operation in all the 227 branches of the bank with the establishment of Polaris Bank as the bridge bank and ensured that depositors have unhindered access to their deposits in excess of N949.60 billion as at June 2018.

    He said that NDIC has gone ahead to prosecute those found to have caused failure of the banks and secured judgement against some of them, while recovering some of the debts owed the liquidated banks and their depositors.