The Nigeria Deposit Insurance Corporation NDIC has recorded some significant achievements which have contributed to the stability of the nation’s financial system.
The Managing Director and Chief Executive Officer of the Corporation, Umaru Ibrahim stated this while delivery his speech on occasion of NDIC Special Day event at 2019 Lagos International Trade Fair.
The managing director who was ably represented at the event by Director, Special Insured Institutions Department of the Corporation, Mr Joshua Etopidiok noted that the corporation has recorded some significant achievements which have contributed to the stability of the nation’s financial system. They are:
- One of the most significant achievements of the corporation is the provision of the deposit insurance coverage to subscribers of Mobile Money Operators (MMOs) to the maximum limit of N500,000.00 through the pass-Through Deposit Insurance Framework. According to him, as it stands, the number of licensed MMOs by the CBN is twenty-three (23) with eight (8) being “Bank-led” and the remaining fifteen (15) “Non-Bank Led” and also as at June 30, 2019, the number of subscribers to MMOs stood at 9,249,265.
- As at June 30, 2019, the corporation received a total number of 35 petitions/complaints from Banks customers on various issues such as ATM frauds, unauthorized funds transfers, cheque related issued and much more. According to the report, investigations and mediation were carried out where necessary and customers were appropriately reprieved.
- In the area of capacity Building, the NDIC is changing the establishment of a centre for DIS in Africa. According to him, the NDIC Academy Learning Centre was recently accredited by the Charted Institute of Bankers of Nigeria (CIBN) as a major training hub for financial institutions.
- In August 2019, the Corporation signed a MoU on experience sharing and capacity building with the Korean Deposit Insurance Corporation (KDIC) and the Taiwan Central Deposit Insurance Corporation to further deepen the implementation of the DIS in Nigeria. The statement revealed MoU also aims to enhance our capacity to understand and supervise the FINTECH and the Digital currencies phenomenon.
- Following the issuance of the Framework for the Licensing and Regulation of Payment Services Banks (PSBs) by the Central Bank of Nigeria (CBN) which stipulated the extension of Deposit Insurance Coverage to the depositors, the corporation has designed an appropriate Differential Premium Assessment System (DPAS) Matrix for Premium Computation/Payment as well as set an insurable limit to the Depositors in the event of failure. According to him, the corporation is taking these measures so as to engender confidence in the system and to discourage bank customers from keeping cash at home, shops, and other places outside the banks. Monies kept outside the banks are not insured by the corporation and are susceptible to loss through robbery, theft or fire outbreak, he added.
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“The Corporation is the protection of depositors of insured financial institutions as well as promoting public confidence in the financial system.
“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.”
