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Tag: Nigeria Deposit Insurance Corporation

  • NDIC to pay N24.3 billion more to Heritage Bank’s depositors

    NDIC to pay N24.3 billion more to Heritage Bank’s depositors

    The Nigeria Deposit Insurance Corporation (NDIC) has declared a N24.3 billion second liquidation dividend for depositors of Heritage Bank Limited whose account balances exceeded the statutory insured limit of N5 million at the time of the bank’s closure.

    The Corporation stated that the N24.3 billion payment represents only the second liquidation dividend emphasizing that additional payments will follow as more assets are realized and outstanding debts are recovered.

    The Nation reports that in April 2025, NDIC disbursed N46.6 billion as the first tranche of liquidation dividends to depositors of the defunct Heritage Bank with funds exceeding the insured limit of N5 million.

    The declaration follows the revocation of Heritage Bank’s operating licence by the Central Bank of Nigeria (CBN) on June 3, 2024, after which the NDIC was appointed liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1 and 2) of the NDIC Act 2023.

    In a statement by the Head of the NDIC’s Communication and Public Affairs Department, Hawwau Gambo, the Corporation said it had since commenced the disposal of physical assets, recovery of debts and realisation of investments belonging to the defunct bank.

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     “As a result of these efforts, the NDIC declared a first liquidation dividend of N46.6 billion in April 2025, at a rate of 9.2 kobo per N1.00,” the corporation stressed, adding that the amount was paid on a pro-rata basis to depositors whose balances were above the ₦5 million insured limit at the date of closure.

    Gambo explained that the newly declared second liquidation dividend of ₦24.3 billion was generated from debt recovery, sale of physical assets and realisation of investments.

    The payment will be applied to outstanding uninsured balances at a rate of 5.2 kobo per ₦1.00, in accordance with Section 72 of the NDIC Act 2023.

    “This brings the cumulative liquidation dividend declared to date to 14.4 kobo per ₦1.00,” the statement noted.

    According to the NDIC, payments will be made using depositors’ existing details already captured in its records. Eligible depositors who have previously received their insured deposits and the first tranche of liquidation dividends will have their alternative bank accounts automatically credited using their Bank Verification Numbers (BVN).

    Depositors were advised to check their accounts for confirmation, while those without alternative bank accounts, BVNs, or who are yet to claim their insured sum of up to ₦5 million or the first liquidation dividend, were urged to visit the nearest NDIC office or complete the e-claim form on the Corporation’s website for prompt processing.

    The NDIC clarified that a liquidation dividend refers to payments made to depositors of a closed bank whose balances exceed the insured limit, using proceeds from asset sales, debt recovery and investment realisation.

    It added that only after all depositors have been fully reimbursed would payments be made to other creditors and, subsequently, shareholders, subject to the availability of funds.

  • Senate confirms Abiola’s daughter as NDIC Executive Director

    The Senate on Wednesday confirmed the appointment of Ms Omolola Edewor as Executive Director, Corporate Services, Nigeria Deposit Insurance Corporation (NDIC).

    This followed presentation of the Committee on Banking, Insurance and other Financial Institutions by the Chairman, Sen. Rafiu Adebayo at plenary.

    Presenting the report, Adebayo said the nominee, who is currently occupying same position, was screened and found worthy of being confirmed for a second and final term of five years.

    He said the Senate at its sitting on April 9, referred the request for her nomination to the committee for screening.

    The lawmaker noted that, “the committee held the screening and we went through her curriculum vitae, security clearance form and code of conduct bureau details.

    “She hails from Ogun State and she will be in charge of the administrative running of the organisation.

    “The committee also found out that the nominee has no petition against her and she is qualified to hold the position for another term.

    ” So, we recommend that she be confirmed.

    Seconding the committee’s recommendation, Sen. Barau Jibrin(APC-Kano), said, “the nominee has shown to be eminently qualified and by her pedigree she is qualified to be confirmed.

    President of the Senate, Dr Bukola Saraki put the confirmation to a voice vote and it was adopted by the lawmakers.

    The committee had on April 18, screened the nominee and promised to refer the report to the Senate in plenary.

    Meanwhile, President Buhari had written the Senate, seeking Edewor’s confirmation in accordance with provisions of 5(4) of the Nigerian Deposit Insurance Corporation Act.

    Ms Abiola Edewo is the first daughter of the acclaimed winner of the 1993 presidential election, Moshood Abiola.

    She is also a former member of the House of Representatives.

    With the confirmation, Edewor will be serving her second term and final term of five years as executive director.

  • 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.

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    “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.

  • For better micro-credit

    The extended recapitalization deadline and re-categorization of Nigeria’s 898 micro-finance banks (MfBs), by the Central Bank of Nigeria (CBN), is a tacit admission of their shortcomings, as well as an opportunity to ensure that they live up to their full potential.

    In a circular released by the apex bank last week, the original deadline for the recapitalization of microfinance banks was moved from 2020 to 2021. National MfBs are required to attain a N5 billion minimum capital base. That for state MfBs is set at N1 billion.  At the very base, Tier 1 Units are expected to rev up their capital to N200 million, while Tier 2 Unit MfBs must have minimum capital base of N50 million.

    National MfBs are to attain a threshold of N3.5 billion by April 2020 and N5 billion by April 2021.  State MfBs must reach N500 million by April 2020 and N1 billion by April 2021. Tier 1 Unit MfBs must hit N100 million capitalization by April 2020, and N200 million by April 2021; while the Tier 2 MfBs must peak from N35 million in April 2020 to N50 Million capital base by April 2021.  By April 2021, therefore, the least capitalized MfB would boast a capital base of N50 million.

    The recapitalization and re-categorization exercise is clearly a good thing. Better-capitalized microfinance banks would theoretically be able to perform their functions of grassroots-level financial intervention and intermediation more effectively. The introduction of new categories is aimed at ensuring that the traditionally-neglected rural areas have greater access to banking products and services.

    However, it is also obvious that recapitalization is an undeniable indication of the fact that MfBs have failed to live up to the high expectations placed upon them. The CBN expected them to cover the majority of the nation’s economically-active poor citizens by 2020; to increase the micro-credit’s share of total credit to the economy from 0.9 per cent in 2005 to at least 20 per cent by 2020; to ensure that at least two-thirds of state and local governments participate in micro-credit financing by 2015; and to help the nation attain the 80 per cent financial inclusion target set by the CBN which currently stands at a little above 50 per cent.

    Far too many micro-finance banks are plagued by poor management structures, weak internal controls and an overall lack of institutional capacity. Indeed, instead of filling the gap left by the nation’s commercial banks, many of them have in fact widened it.

    The outrageously high-interest rates charged by MfBs rival those of their commercial counterparts. In September 2018, the CBN revoked the licenses of 154 MfBs, explaining that 62 had already folded up, while 73 were insolvent, 11 terminally distressed, and five had filed for voluntary liquidation.

    If micro-finance banks are to make the positive impact desired of them, they must be better-regulated. The CBN must enhance its capacity to properly monitor them and ensure that they are staffed by competent managers and run in accordance with laid-down banking principles.

    It is particularly important that the MfBs resist the temptation to operate as mini-commercial banks.  That is often the main reason so many find themselves in financial trouble. The Nigeria Deposit Insurance Corporation (NDIC) paid N2.9 billion to 81,328 insured depositors in failed MfBs in December 2015. The Corporation claims to have settled over 525,009 MfB depositors, as at September 2017.

    Nigeria’s micro-finance banks, for their own part, must understand that the administrative standards they should adhere to are as stringent as those prescribed for commercial banks. Competence, trust and integrity are non-negotiable requirements of any successful banking operation. They must plan for the long-term, stick to prescribed rules and regulations, and avoid the temptation to cut corners. The better they are able to do this, the sooner their positive impact will be felt across the nation.

  • NDIC shutdowns Fortis Microfinance Bank

    The Nigeria Deposit Insurance Corporation (NDIC), has announced the official liquidation of Fortis Microfinance Bank and its branches nationwide.

    The corporation made this known in a press statement posted on its official website.

    It assured insured depositors of the repayment of their monies.

    The statement reads: “The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of Fortis Microfinance Bank whose license was recently revoked, has concluded arrangement to close the bank and its branches and pay the insured Depositors.

    “We are therefore calling all depositors of the bank to visit the bank’s branches and meet NDIC officials for the verification of their claims, commencing from Monday, 4th February, 2019 till Friday, 8th February, 2019.”

    It would be recalled that Fortis Microfinance Bank, which was licensed by the Central Bank of Nigeria (CBN) in 2007 and listed on the Nigerian Stock Exchange (NSE) as the first private sector led Microfinance Bank in 2012, had its shares suspended from being traded on the floor of the NSE for failing to adhere to standard corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

    It had also been grappling with protracted governance crisis and internal breakdown of management controls which ultimately led to the resignation of its interim Managing Director, Mrs. Bunmi Lawsan; now the eventual collapse of the bank.

    In 2017, the banks nine month’s interim results clearly showed that with a customer deposit of about N7.9 billion, it only had less than 10 per cent of its total deposit which amounted to N440 million in its bank accounts.

    The bank’s depositors are advised to check the NDIC’s official website for more information on how they can reclaim their funds.

  • Electronic fraud in banking hits N6.1trn by 2021 – CBN

    Mr Sunday Salam-Alada, Director, Consumer Protection Department, Central Bank of Nigeria (CBN) has said electronic fraud losses in the banking system are projected to reach N6.1 trillion by 2021.

    Salam-Alada disclosed this at the ongoing workshop for Business Editors and Finance Correspondents, organised by Nigeria Deposit Insurance Corporation (NDIC) in Benin.

    According to him, the volume and value of e-transactions is projected to continue to increase nationally and globally.

    Salam-Alada, represented by Mr Ibrahim Hassan, Director, Research, Policy, International Relations Department (RPIRD) NDIC, said it was due to broader ecosystem scope, evolution of channels, adaptability to disruptive innovations and modes payment.

    He said other reasons included increased inclusion and evolving technologies.

    The director also said that the CBN, through its Consumer Protection Department (CPD), had resolved over 13,715 complaints.

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    Salam-Alada added that this resulted in the refund of about N72.2 billion to customers by the commercial banks based on 25,043 cases of fraud in 2017.

    He said the amount represented a 28 per cent increase if compared to 19,531 cases recorded in 2016.

    Salam-Alada said there was a 24 per cent reduction in actual fraud loss value in 2017 with N1.63 billion as against the to 2016 figures.

    According to him, the statistics provided by the CBN shows there is a significant increase in the year-on-year volume and value of transactions across all payment channels in Nigeria.

    Consequently, 1.4 billion transactions with a value of N97.4 trillion were processed in 2017 as against 869 million transactions with a value of N69.1 trillion recorded in 2016.

    He said the increase of 59.7 per cent and 40.9 per cent were recorded in the volume and value of transactions in 2017.

    The director hinted that the CBN would soon issue a framework on consumer protection.

    Salam-Alada said the CPD conducted a mapping exercise of financial literacy activities in the country.

    He added that it was one of the achievements of the department.

    He said the achievements also included the biannual consumer protection compliance exams and review of the guide to banks’ charges.

  • CBN, NDIC must probe directors of defunct Skye Bank, Finance Minister insists

    The Minister of Finance Hajiya Zainab Ahmed yesterday directed the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to fully investigate and prosecute all the directors and executive management who contributed to the collapse of the defunct Skye Bank Plc.

    The probe will be extended to other Deposit Money Banks (DMBs) in liquidation. The minister gave the directive during her familiarization visit to the executive management of the NDIC led by the Managing Director and Chief Executive Umaru Ibrahim.

    Also in the team that welcomed the minister was the Executive Director (Corporate Services) of the corporation, Hon. Omolola Abiola-Edewor.

    A statement by the Head, Communication and Public Affairs of NDIC, Mohammed Kudu Ibrahim, said the minister expressed concerns about the spate of non-performing loans in the banking industry.

    She said; “While  the bailout of distressed financial institutions was necessary in the interest of the stability of the banking system, emphasis should also be placed on the investigation and prosecution of delinquent board directors and executive management of financial institutions  who abused the trust reposed in them by depositors.

    The statement said: “The minister urged the CBN and the NDIC to use the recent failure of the defunct Skye Bank Plc as an opportunity to deal decisively with any of its directors and management found culpable in the course of the investigations, so as to serve as a deterrent to other operators in the financial system.

    “The Federal Government is no longer prepared to treat such serious infractions with levity.

    Earlier in his welcome address, the NDIC MD/CE, Umaru Ibrahim, assured the minister that the corporation will “do all it can to assist in the recovery of all the debts owed the defunct Skye Bank and other banks in liquidation.

    “The NDIC is determined to ensure that the directors who perpetrated in insider abuse and other illegalities in running the affairs of the bank are investigated and prosecuted by appropriate authorities.

    “The primary concern of the NDIC is to ensure the safety of depositors’ funds and minimise the disruption of banking services.

    The MD/CE informed the minister that since 1991, the aggregate payment to depositors, creditors and shareholders of 46 closed banks amounted to N11.75 billion, out of which the total payments to insured depositors of Deposit Money Banks (DMBs) amounted to N8.252 billion.

    The MD/CE also stated that a total of N2.89 billion was paid out to insured depositors of Microfinance Banks (MFBs) covering 81,657 individual accounts.

    He said bout N69.60 million was also paid to insured depositors of Primary Mortgage Banks (PMBs). A total number of 46 DMBs, he further stated, are currently in liquidation.

    He disclosed that the total amount paid by the corporation under the Fiscal Responsibility Act amounted to N175 billion.

    The MD/CE  told the minister that the NDIC “ used the most appropriate failure resolution option in the case of the defunct Skye Bank to ensure that over 6,000 jobs were saved while its depositors continued to operate their accounts with the new Polaris Bank Limited which assumed its entire assets and liabilities.

    Responding, the minister commended the NDIC for the thoroughness of its bank examination reports which have become acknowledged in the banking system.

    She also expressed her appreciation to the corporation for the prompt payment of its contribution under the Fiscal Responsibility Act.

     

  • Abuse of ethical standards negatively impacting banking industry – NDIC

    The Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, have stressed the need for effective collaboration between regulators and operators in the banking system for the establishment of sound ethics and professionalism in the banking industry.

    He made the call during the courtesy visit by the Executive members of the Chartered Institute of Bankers (CIBN) on Monday at its office in Abuja.

    The NDIC Boss in a statement by Mohammed Kudu Ibrahim, its Head of Communications and Public Affairs, decried abuse of extant regulations and ethical standards as negatively impacting on the confidence in the banking industry and the entire financial system in general. He cited the recent involvement of some deposit money banks in illegal forex transfers as a wake-up call for better corporate governance and ethical behaviour by the banks.

    Speaking further, he assured the CIBN President of his resolve to strengthen collaboration with the institute in the enforcement of good corporate governance among banks as well as the promotion of high ethical standards and professionalism.

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    According to him, it is the primary responsibility of regulators to uphold strict compliance with international best practices and ethical standards in order to promote effective risk management and sound corporate governance in the banking industry. This is in line with the Corporation’s drive towards protecting depositors and enhancing public confidence in the financial system.

    The CIBN President, Dr. Uche Olowu attested to the recognition of the NDIC Academy by the International Association of Deposit Insurers (IADI) as a world class institution in providing capacity building for the banking industry.  He said this recognition and the CIBN’s active collaboration with the Corporation to entrench ethical standards is a key driver towards effective service delivery in the industry. He therefore emphasized the need to extend the collaborative efforts to joint research and knowledge-based events to enhance public awareness about the role of deposit insurance in financial system stability.

    Dr. Olowu, who is also the Chairman of Council, stated the active participation of the Corporation in the activities of the council as well as its role in the nation’s economic development informed the Council’s visit to formally invite the NDIC MD/CE as a special guest and resource person at the CIBN 11th Annual Banking and Finance Conference.

  • Qualitative education could check violence and insecurity – NDIC boss

    The Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has advocated quality education as panacea to check the spate of violence and insecurity challenges currently being experienced in the country.

    The NDIC boss made the remark at the 15th Graduation Ceremony of Zaria Academy, Shika, Kaduna State where a science laboratory built and equipped by the Corporation was formally commissioned as part of its corporate social responsibility initiative.

    While lamenting the upsurge in violent crimes and other challenges of insecurity especially among youths in the country, Ibrahim expressed the belief that the situation could be attributed to poor and weak educational system.

    He therefore called for concerted efforts from all stakeholders to guarantee qualitative education for millions of the nation’s youths to prepare them for gainful employment opportunities and better living conditions.

    Ibrahim urged Nigerians to view the provision of quality education as the responsibility of all, describing complete reliance on government alone for delivery of quality education as unrealistic.

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    He called on the private sector to compliment government efforts, stating that the resources available to government could not provide the type of education required to produce graduates that were not only employable, but also adaptable to the rapidly changing global economy.

    The NDIC boss further said that the Corporation’s acceptance of the request from the Zaria Academy for the construction and equipping of its Science Laboratories which were razed by fire about two years ago was hinged on the pitiable and squalid education situation in the Northern states of the country.

    He expressed delight that the Corporation’s modest intervention largely contributed to the successes of the last two sets of graduates from the academy.

    While noting the low standard of education in the North and the low rate of Senior Secondary School enrolment, Ibrahim called on governors in the region to improve the educational standards of their states and also offer scholarships to bright indigent students.

     

  • NDIC assists Ugandan agency on capacity building

    The Nigeria Deposit Insurance Corporation (NDIC) is assisting the Uganda Deposit Protection Fund (DPFU) to develop capacity to implement the Deposit Insurance System (DIS) in the East African country.

    In a statement by Mohammed Kudu Ibrahim, NDIC’s Head of Communications and Public Affairs, the Corporation recently hosted a five-member delegation from DPFU who arrived the country to understudy the activities of the Corporation.

    He said: “The NDIC has been the destination of choice for several sister agencies and Central Banks from across the African continent eager to understudy the activities of the Corporation and learn from its rich experience in Deposit Insurance – a subject on which it is recognized as a leader in Africa.

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    “The Ugandan team was only the latest delegation from several Africa countries to visit the Corporation for capacity building.”

    He further added that, “The NDIC previously hosted delegations from the Reserve Bank of Malawi, Reserve Bank of Lesotho, Deposit Protection Fund Board of Kenya, Deposit Insurance Board of Tanzania, Commission Bancairedel’Afrique Centrale (COBAC) of Cameroun, Delegates from Banque Centrale Des Etats De L’ Afrique De L’ Ouest (BCEAO) in Senegal all of whom the NDIC assisted build the capacity for the implementation of the Deposit Insurance System (DIS) in their various jurisdictions.

    “Others include teams from the Central Bank of The Gambia, Bank of Tanzania, the Deposit Protection Corporation of Zimbabwe, and the Ghana Deposit Protection Corporation (GDPC). In September, 2018, the NDIC will also host the African Regional Conference of the International Association of Deposit Insurers (IADI).”