The Nigeria Deposit Insurance Corporation (NDIC) has said in the coming years, the Corporation will continue to work with the Central Bank of Nigeria (CBN) to ensure effective supervision of banks and the adherence to prudential guidelines and code of corporate governance for banks to ensure their safety and the overall stability of the Nigerian financial system.
The Managing Director and Chief Executive Officer of the NDIC, Umaru Ibrahim stated this while delivery his speech on occasion of NDIC Special Day at ongoing the Lagos International Trade Fair (LITF).
The managing director who was ably represented at the event by Director, Special Insured Institutions Department of the Corporation, Mr Joshua Etopidiok noted that at this point, it is imperative to point out the need for businesses, traders, artisans, farmers and other small savers to ensure that their savings are deposited in banks or other licensed deposit-taking financial institutions nearest to them to avoid losses that could result from fire incidents, burglaries and other forms of crimes.
The Nigeria Deposit Insurance Corporation said the Theme of Lagos International Trade Fair this year: Connecting Businesses, Creating Value complements the federal government’s initiatives on developing business critical to growing the economy especially at the Grassroots. According to him, being an important player in the Nigerian Financial System, NDIC Supports the growth of businesses through the robust supervision of Insured Deposit Taking Financial Institutions in Nigeria.
Therefore, He said NDIC is always ready and willing to partner with the Lagos Chamber of Commerce and Industry (LCCI). We recognize that the Annual Trade Fair is a veritable platform and opportunity to educate the general public on the activities of the corporation. Also, the fair enables the corporation to engage directly with Depositors of closed financial institutions who are yet access their trapped funds.
“As a member of the Nigerian Financial Safety-Net, a crucial public policy objective of the Corporation is the protection of Depositors of Insured Financial Institutions as well as promoting public confidence in the financial system. The objectives are derived from the NDIC’s Core mandate of Deposit Guarantee, Bank Supervision, Distress Resolution, and Bank Liquidation. As part of its mandate, NDIC in partnership with the CBN jointly conducts Risk Based Supervision of Banks to ensure early identification and timely intervention in potentially Troubled Banks, he added.
“When insured financial institutions fail, depositors of Deposit Money Banks (DMBs), Non-Insured Banks(NIBs), and Primary Mortgage Banks (PMBs) are reimbursed up to a maximum limit of N500,000.00, while to maximum insured coverage for depositors of Microfinance Bank (MFBs) is N200,000.00
However, the managing director noted that the insured limits are periodically reviewed by the Board of the Corporation to ensure that majority of depositors are covered.
In his earlier opening remarks speech, the President, the Lagos Chamber of Commerce and Industry (LCCI), Mr Babatunde Paul Ruwase said NDIC continued to wax stronger not only in the implementation of its mandate, but also in ensuring that the over-riding public policy objectives for establishing a strong deposit insurance system in the country were realized.
The LCCI commends NDIC for its efforts in deepening public confidence and promoting stability in the banking industry by assuring depositors of the safety of their funds.
He also applauds NDIC’s resolve to tackle emerging challenges in the banking sector and the economy as we believe it will make Nigeria a better destination for capital importation.
The Captioned Photo: The Managing Director and Chief Executive Officer of the NDIC, Umaru Ibrahim